MASTER 
NEGATIVE 

NO.  95-82476- 1 0 


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Author: 


Guaranty  Trust  Company 
of  New  York 

Title: 

How  business  with  foreign 
countries  is  financed... 

Place: 

New  York 

Date: 

[1921] 


^s-^-zi\-iio-io 

MASTER   NEGATIVE  # 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

BIBLIOGRAPHIC  MICROFORM  TARGET 


ORIGINAL  MATERIAL  AS  FILMED  -    EXISTING  BIBLIOGRAPHIC  RECORD 


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Guaranty  trust  company  of  New  York. 

How  business  with  foreign  countries  is  financed,  1921. 
New  York  [etc.]  Guaranty  trust  company  of  New  York 


=1921 


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74  p.  incl.  illus.,  forms.    24*"". 


1.  U.  S.— Comm.    2.  Rnnlrg  aod  Panking.       i.  Title. 


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Copyright    A  611856 


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How  Business 

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How  Business 

with  Foreign  Countries 

is  Financed 


1921 


Guaranty  Trust  Company  of  New  York 

Head  Office:  140  Broadway,  New  York 


FIFTH     AVENUE     OFFICE 
Fifth  Avenue  and  44th  Street 


MADISON  AVENUE  OFFICE 
Madison  Avenue  and  60th  Street 


GRAND     STREET     OFFICE 
268       Grand      Street 


I  O  N  D  O  N     OFFICES 
^2     Lnnibard     Street,     E.    C. 

;  »        Pall        Mall 
Alexandra  HouHe,  Kinggway 


LIVERPOOL    OFFICE 
27  Cotton  Exchange  Buildings 

HAVRE      OFFICE 
122     Boulevard     Strasbourg 


PARIS      OFFICE 
Rue    dea    Iialiens,    1    and    3 

ANTWERP     OFFICE 
36     Rue     des     Tanneurs 


BRUSSELS   OFFICE 
158      Rue      Royale 

CONSTANTINOPLE  OFFICE 
21    Rue    KurekdjUer.    GalaU 


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Foreword 


Copyright,  1921 
By  Guaranty  Trust  Company  of  New  York 


^I^HE   purpose  of  this   booklet    is    to    outline    the 

services  and  facilities   offered   by   the   Guaranty 

Trust  Company  of  New  York  in  financing  foreign  trade, 

and  to  explain  the  methods  and  forms  generally  used. 


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main  office 

Guaranty  Trust  Company  of  New  York 

140  Broadway,  New  York 


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List  of  Forms 


PAGE 

Acceptance  Agreement  39 

Application  for  Letter  of  Credit  28 

Bailee  Receipt  55 

Bank  Acceptance,  not  based  on  imports  or  exports  43 

Banker's  Demand  Draft  on  Barcelona,  Spain  13 

Banker's  Demand  Draft  on  London  10 

Banker's  Demand  Draft  on  Paris  12 

Banker's  Time  Draft  on  London  11 

Consular  Invoice  49 

Commercial  Draft,  drawn  in  dollars  15 

Draft  on  an  English  Bank  against  a  Shipment  of 

Cotton  to  Liverpool  16 

Draft  in  Pounds  Sterling  for  Export  to  Australia  or 

a  British  Colony  17 

Export  Letter  of  Credit  (Irrevocable)  25 

Export  Letter  of  Credit,  (Revocable)  24 

Import  Letter  of  Credit  Agreement  (Dollars)  30 

Import  Letter  of  Credit  Agreement  (Pounds  Sterling)  33 

Import  Letter  of  Credit  (Dollars)  29 

Import  Letter  of  Credit  (Pounds  Sterling)  32 

Letter  of  Instructions  (to  accompany  draft  for  collection)       21 

Trade  Acceptance,  based  on  domestic  sales  of  merchandise      42 

Travelers  Check  58 

Travelers  Letter  of  Credit  (Dollars)  60-61 

Travelers  Letter  of  Credit  (Francs)  64-65 

Travelers  Letter  of  Credit  (Pounds  Sterling)  62-63 

{Continued  on  following  page) 


w 


List  of  Forms  (Continued) 


f 


PAGE 

Trust  Receipt,  as  used  when  the  merchandise  is  entrusted 

to  the  merchant  for  sale  51 

Trust  Receipt,  as  used  in  connection  unth  export  credits 

and  loans  52 

Trust  Receipt,  as  used  to  cover  delivery  of  merchandise 

actually  sold  53 

Trust  Receipt,  as  temporarily  accepted  against  surrender 
of  shipping  documents  .54 


I, 


How  Business  with  Foreign  Countries 

is  Financed 

Banking  Service  for  Foreign  Trade 

The  most  important  factor  in  financing  foreign  trade  is  the  service  rendered 
by  a  bank  to  its  clients.  To  make  this  service  complete  in  every  respect,  it  is  neces- 
sary that  a  bank  be  in  intimate  and  constant  contact  with  all  parts  of  the  world. 

Beside  its  own  offices  in  New  York,  London,  Paris,  Brussels,  Liverpool,  Antwerp. 
Havre  and  Constantinople,  and  its  resident  representatives  and  travelers  abroad,  the 
Company  is  affiliated  with  institutions  which  operate  in  particular  spheres.  In 
addition  to  these,  it  has  more  than  2,000  correspondents,  who  provide  direct, 
safe  and  prompt  banking  service  with  every  part  of  the  globe.  Many  of  these 
correspondents  are  among  the  leading  banking  institutions  of  the  world.  They 
have  been  long  established  in  their  respective  localities  and  are  thoroughly 
familiar  with  local  commercial  and  financial  conditions. 

The  Foreign  Department  of  the  Guaranty  Trust  Company  of  New  York  is  a 
bank  complete  in  itself. 

To  assist  in  the  development  of  new  foreign  business,  our  International  Trade 
Service  supplies  data  regarding  every  phase  of  foreign  trade:  markets,  names  of 
buyers,  credit  ratings,  tariffs,  export  methods,  etc.  It  endeavors  to  keep  in  touch 
with  all  international  commercial  developments,  and  to  give  its  customers  and 
others  interested  the  latest  available  information. 

The  Guaranty  Trust  Company  of  New  York  offers  these  services  to  bankers, 
manufacturers  and  merchants,  and  cordially  invites  them  to  consult  the  officers 
of  its  Foreign  Department  or  its  International  Trade  Service  for  full  information 
regarding  such  facilities. 

The  services  of  the  Foreign  Department  embrace  the  following: 

Opening  of  Current  Deposits  and  Special  Accounts. 

Purchase  and  sale  of  Foreign  Exchange  (Cable  Transfers,  Checks  and  Foreign 
Currencies). 

Purchase  and  sale  of  Future  Exchange. 

Discounting  of  Bank  and  Trade  Acceptances. 

Purchase  of  approved  clean  and  documentary  Bills  of  Exchange. 

Opening  of  Import  Credits. 

Opening  of  Export  Credits. 

Opening  of  Domestic  Letters  of  Credit. 

[71 


'-  "^-  ■J-'"— 


Granting  of  Acceptance  Credits  against  readily  marketable  staples  in  ware- 
house. 

Advances  and  loans  on  approved  collateral. 

Collection  of  clean  and  documentary  Bills  payable  abroad. 

Protection  of  drafts  drawn  by  our  correspondents  on  foreign  countries. 

Issuance  of  Travelers  Checks  and  Letters  of  Credit. 

Gathering  and  compiling  Foreign  Trade  Information. 

Securing  Credit  Information  for  customers  and  correspondents. 

Collection  of  foreign  securities  and  coupons. 

Acting  as  custodian  of  securities. 

Acting  as  agents  for  foreign  governments,  corporations,  firms  and  individuals. 

Current  Deposits  and  Special  Accounts 

The  Foreign  Department  receives  deposits  from  its  customers  in  dollars,  allow- 
ing interest  on  balances  of  $1,000  or  more.  On  deposits  withdrawable  only  after  a 
fixed  period  a  higher  rate  is  usually  granted. 

The  Foreign  Department  also  opens  accounts  for  our  customers  with  our 
London  OflSce  in  pounds  sterling,  with  our  Paris  and  Brussels  OflSces  in  francs,  and 
with  our  Constantinople  OflSce  in  Turkish  pounds. 

Cable  Transfers 

The  "cable  transfer"  is  the  quickest  means  of  transferring  value  from  one  coun- 
try to  another.  It  practically  eliminates  time  and  distance  which  are  important 
factors  in  financing  foreign  trade. 

It  is  used  principally  to  pay  an  obligation  coming  due  in  some  foreign  coun- 
try; to  transfer  a  balance  held  in  a  foreign  bank  to  a  bank  in  another  country,  or 
to  pay  for  a  shipment  of  merchandise. 

The  rate  for  cable  transfers,  or  in  other  words  the  "cable  rate,"  is  the  basic 
rate.  It  is  determined  by  supply  and  demand,  which  in  turn  are  subject  to  all  of 
the  influences  of  economic  laws,  such  as  the  volume  of  imports  as  compared  to 
exports,  and  the  financial  and  political  conditions  of  the  respective  countries.  In 
normal  times,  this  rate  is  governed  principally  by  the  gold  content  of  the  standard 
money  of  one  country  as  compared  to  that  of  another,  plus  the  shipping  charges, 
interest  and  insurance  on  the  total  cost  of  the  gold  shipped. 

Bankers'  Drafts 

A  "banker's  draft"  is  a  transfer  of  funds  by  mail.  A  bank  in  this  country,  for 
example,  draws  its  draft  on  a  foreign  depository  payable  for  a  specified  amount 
to  some  person  or  firm. 

These  drafts  are  drawn  at  sight  (payable  upon  presentation),  or  within  a 
specified  time  after  presentation. 

18] 


The  time  which  elapses  between  the  issuance  and  the  presentation  is  dependent 
upon  mail  service.  A  week  or  ten  days  may  elapse  between  the  mailing  of  a  draft 
in  New  York  and  its  presentation  in  London  or  Paris,  or  it  may  require  a  month 
or  six  weeks  to  reach  certain  points  in  South  America  or  in  the  Far  East. 

The  rate  for  a  sight  draft,  or  in  other  words  the  "check  rate,"  is  determined 
largely  by  adding  to  the  cable  rate  the  interest  for  the  transit  time  between  the 
issuing  and  paying  banks.  The  rate  of  interest  depends  on  the  rates  ruling  at 
the  market  of  purchase  or  sale. 

The  rate  for  time  bills,  commonly  known  as  the  "bill  rate,"  is  determined  by 
adding  to  the  check  rate  the  discount  ruling  in  a  foreign  market  for  bills  having  a 
maturity  of  30,  60  or  90  days  or  more. 

On  the  following  pages  are  shown  specimens  of  bankers  drafts  which  can  be 
purchased  from  us,  in  any  amount,  at  current  rates  of  exchange. 


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Specimen  of  a  bank  draft  on  London  in  Pounds  Sterling, 
payable  on  demand. 

All  foreign  drafts  are  invariably  issued  in  duplicate  for 
greater  safety,  the  remitter  sending  the  "original'*  by  one 
mail  steamer,  and  the  "duplicate"  by  a  following  mail 
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Bankers'  Draft  on  Paris 

Bank  draft  on  Paris  in  French  Francs,  payable  on 
demand. 

Writing  the  date  in  letters  (as  shown  above)  in  drafts 
and  checks  on  France,  exempts  them  from  the  full  bill- 
stamp  tax  of  that  country. 


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*Ma<gy  MfiEOANlIL  DE  LAS  AJbi^AiOAi   PER  PRO  W 

BAjaOELONA 

PER  PRO  .^ 


• 


Bankers'  Draft  on  Spain 

Bank  draft  on  Barcelona,  Spain,  in  Pesetas,  payable 
on  demand.  Such  drafts,  as  well  as  drafts  on  the  prin- 
cipal commercial  centers  of  the  world,  can  be  purchased 
from  us,  at  current  rates  of  exchange. 


1 


[12] 


[13] 


INTENTIONAL  SECOND  EXPOSURE 


m 


f*«¥fW^ 


(Juaraiily  Trust  Company  of  NewYoik 

Pay  against  this  uBiuiXAt  check  (IHunjCATK  B«mo  rNi»Aii»  To n ik  ori»kr(»f 


/<K^t 


f»i«»»z4i  FfM  r##oo«>iM><»i«»»if>»z«)#z4gi»x«9eiz#» 


FHA.MCS 


TO 


N9  3351 


Guanmty  Tnist  Coiiipauy  of  Xew^rk 

\lk'^  Kui^  tl(>H  ItulUuiH 

Pa  rlH,  France 


(manuitr'&iul  Company  ofXewYotk 


t. 


( jiiaranly  Trust  Compaii)^  ofNew^bi  k 

Pay  AOAIMHT   Tins    IM'I'I.M'ATK   illKC'K  (OMK'.IXAL  HKIXO  IT«I»AII»)  ToTllB  OKDRH  OF 


z«»»zo  r^  TMousA$m  a*x«ii»Z4>c*z«i  f*z#i  mzomz«> 


TlIK    H»TM    OK 

Fl«A?f<:»    ! 


^M»:        GuaranlyTnusf  CompanTftfXcwYork 
yo    3351  Paris, France 


(luamnlr  TniM  <%»mi»any  of  Xcw\»ik 


Bankers'  Draft  on  Paris 

Bank  draft  on  Paris  in  French  Francs,  payable  on 
demand. 

Writing  the  date  in  letters  (as  shown  above)  in  drafts 
and  checks  on  France,  exempts  them  from  the  full  bill- 
stamp' tax  of  that  country. 


Guaranly  Trust  Company  of  New^bi-k 


'^yr^/    ^^IrU^n 


Xy^M^ 


/v  /vr/^/'  /  ^J/^t/rr/y/y  /fyy/jfy   yy/zViyy/y/ /  J^4>  jJyy/y^  y^ 
f       '^^^fr/^/ryj¥fy/fj/ytyrywy^/i: 

iJiUMUU  MKaOANTIL  DE  LAS  AMERiOAS     PE"  PRO  ~ 
'  BAEOELONA 

X9  55466  PCRPRo  _„  _ 


AfMurcuni 


( juaranly  Irusl  Company  of  New\brk 

i     ^i&.4  S(}S(P  -^  ^//yyy'V/y'//',  ^^^i^j!^<^44^A  /.'/  f^ 

'/yr//S:^yi/<^nur^y^yi^±  — . . ^ ,  _. , ,. 

t        ^y  /vr// v    r  fO'///^ //////  /y/>/^   ////V/yy/// /  /^y  .jyyy//  ^^ 


^y//r/!^  /r/ur///j/yyy/r/yy///. 


iMU«W  MSEOANTIL  DE  LAS  AMJiAiOM   PER  PI^O 

BA£0£LONA 

\*>  55466 


PER  PRO 


'  «MiM1Mi>i'MBCMrt*inr. 
tJMOKXMn  MMrAOCM. 


Bankers'  Draft  on  Spain 

Bank  draft  on  Barcelona,  Spain,  in  Pesetas,  payable 
on  demand.  Such  drafts,  as  well  as  drafts  on  the  prin- 
cipal commercial  centers  of  the  world,  can  be  purchased 
from  us,  at  current  rates  of  exchange. 


4 

I 

\ 

K 

I 


[121 


(13] 


Il 


I  I 


Commercial  Drafts 

The  foreign  Commercial  Draft,  which  for  many  years  has  been  the  commonest 
form  of  payment  for  a  shipment  to  a  foreign  country,  is  similar  to  the  ordinary 
Domestic  Commercial  Draft.  The  principal  differences  are,  that  it  covers  a  foreign 
transaction  and  is  drawn  on  a  foreign  drawee,  that  it  may  be  drawn  in  the  currency 
of  the  buyer's  country  or  in  that  of  the  seller's,  depending  on  the  terms  of  sale,  and 
that  it  is  drawn  in  duplicate  as  a  protection  against  loss  or  delay  in  payment,  the 
duplicate  being  sent  by  the  mail  following  that  by  which  the  original  is  forwarded. 
Payment  or  acceptance  of  either  renders  the  other  null  and  void. 

Commercial  Drafts  drawn  without  shipping  documents  attached  are  known  as 
"clean"  drafts,  while  those  with  shipping  documents  attached  are  known  as  "docu- 
mentary"  drafts.  These  drafts  when  drawn  upon  responsible  individuals  or  busi- 
ness houses,  and  with  shipping  documents  attached,  if  a  documentary  draft,  opens 
to  the  seller  various  possibilities  for  banking  advances  and  discounts,  by  means  of 
which,  under  the  proper  conditions,  the  exporter  is  able  to  realize,  fully  or  in  part, 
on  the  sale  of  his  goods  as  they  are  shipped.  When  negotiated  by  a  bank,  drafts 
drawn  in  foreign  currencies  are  bought  at  the  current  rate  for  30,  60  or  90  day  bills, 
depending  on  the  usance,  while  dollar  drafts  are  either  discounted  by  the  bank  or  a 
loan  is  made  and  the  collection  is  taken  as  collateral.  In  every  instance,  however, 
the  time  required  for  the  bank  to  receive  the  fuhds  from  abroad  must  be  taken  into 
account  by  the  negotiating  bank. 

Following  are  given  a  number  of  samples  of  Commercial  Drafts  in  foreign  trans- 
actions, with  brief  descriptions  of  their  operation. 


& 


o 
o 

t 

o 

'  & 


o 


d 


a 

V, 

o 
o 

*> 
u 

H 

I  . 

t   I. 

'  a 
u 

3 
■»» 
c 
a 


,  ^m^si^  ".^  - 


-Ninety 


Kew  York,  -—  -  -^  ^   -February  20, // 19 


/y^/^/;//;r/W^'//^j^///^^ 


-//'':  MBsars.  Santos  Hermanos,       } ^ 

?.io  Grande  do  Sxxl, ' 

#1/^9.,- Pratll       ,    


Manufftcturers  Export  Gowp&ny, 


Treasurer. 


_le?  Tork,   -  - 


-  February  20, 


....  .  .  -  -  //////.f  //////     eight       ^/^y  SKfJOKil, 


,/0 


-  Kinety 


•/'''' Jiessr ft .   Santos  Hermanos,  . 

Eio  QrandB  do  Sul, 


Hanufacturers  l-^xport  Co^npany, 


.1.%  . 


Bratll 


rreisuror. 


Commercial  Draft  Drawn  in  Dollars 

This  form  of  draft  is  used  when  the  shipper  desires  reim- 
bursement in  U.  S.  Dollars.  Such  drafts  are  generally  drawn 
at  sight,  or  at  30,  60  or  90  days  sight.  They  may  also  be 
drawn  at  30,  60, 90  or  120  days  date,  according  to  the  arrange- 
ment between  the  buyer  and  the  seller.  If  the  draft  covers  a 
shipment  of  merchandise  the  documents  relating  to  the  ship- 
ment are  usually  attached  and  are  surrendered  to  the  buyer 
of  the  merchandise  either  against  his  acceptance  of  the  draft, 
or  against  payment,  according  to  the  instructions  of  the 
seller  to  the  bank. 


M 


[14] 


[15] 


ll 


M 


'» 


Commercial  Drafts 

The  foreign  Commercial  Draft,  which  for  many  years  has  been  the  commonest 
form  of  payment  for  a  shipment  to  a  foreign  country,  is  similar  to  the  ordinary 
Domestic  Commercial  Draft.  The  principal  differences  are,  that  it  covers  a  foreign 
transaction  and  is  drawn  on  a  foreign  drawee,  that  it  may  be  drawn  in  the  currency 
of  the  buyer's  country  or  in  that  of  the  seller's,  depending  on  the  terms  of  sale,  and 
that  it  is  drawn  in  duplicate  as  a  protection  against  loss  or  delay  in  payment,  the 
duplicate  being  sent  by  the  mail  following  that  by  which  the  original  is  forwarded. 
Payment  or  acceptance  of  either  renders  the  other  null  and  void. 

Commercial  Drafts  drawn  without  shipping  documents  attached  are  known  as 
"clean"  drafts,  while  those  with  shipping  documents  attached  are  known  as  "docu- 
mentary" drafts.  These  drafts  when  drawn  upon  responsible  individuals  or  busi- 
ness houses,  and  with  shipping  documents  attached,  if  a  documentary  draft,  opens 
to  the  seller  various  possibilities  for  banking  advances  and  discounts,  by  means  of 
which,  under  the  proper  conditions,  the  exporter  is  able  to  realize,  fully  or  in  part, 
on  the  sale  of  his  goods  as  they  are  shipped.  When  negotiated  by  a  bank,  drafts 
drawn  in  foreign  currencies  are  bought  at  the  current  rate  for  30,  60  or  90  day  bills, 
depending  on  the  usance,  while  dollar  drafts  are  either  discounted  by  the  bank  or  a 
loan  is  made  and  the  collection  is  taken  as  collateral.  In  every  instance,  however,  | 
the  time  required  for  the  bank  to  receive  the  fuhds  from  abroad  must  be  taken  into 
account  by  the  negotiating  bank. 

Following  are  given  a  number  of  samples  of  Commercial  Drafts  in  foreign  trans- 
actions, with  brief  descriptions  of  their  operation. 


c 


o 
o 

•p 

u 
o 

pi 


u 

n 

■Hi 

!    S 

c 


a 

R 
o 
o 

*> 

o 

H 


■     i- 
o 

■f> 

o 


W        «»        J«»         ■■ 


New  lork,- 


..  -FebruP.ry  20, 


/^W 


-Hinety 


T 

#1.%,- Bratil  ,.      \ 


■>//'''  Messrs.  Sajatoa,„H«r!aRnoa, 

Sib  Grande  do  Sul, 


MMiTifacturers  licport  Conp&ny, 


"reasurer. 


.le?  Tork,  -  - 


February  20,   -  -  - 


//f//A^ //////'     sight      ^/i^>/S«€:oKi> 


rj 


!;inety  -  -  -  - 


otjsawl  f  if «  hundred 

•  ■^^'  Vtoaar& '  Santos  Hermrsnos,  .       .       .'  i 

Eio  Qr&nde  do  Sul,  ' 

,1/^9  -  Brafll \ 


Manufacturers  Export  norrtpany. 


Treaauror. 


Commercial  Draft  Drawn  in  Dollars 

This  form  of  draft  is  used  when  the  shipper  desires  reim- 
bursement in  U.  S.  Dollars.  Such  drafts  are  generally  drawn 
at  sight,  or  at  30,  60  or  90  days  sight.  They  may  also  be 
drawn  at  30,  60, 90  or  120  days  date,  according  to  the  arrange- 
ment between  the  buyer  and  the  seller.  If  the  draft  covers  a 
shipment  of  merchandise  the  documents  relating  to  the  ship- 
ment are  usually  attached  and  are  surrendered  to  the  buyer 
of  the  merchandise  either  against  his  acceptance  of  the  draft, 
or  against  payment,  according  to  the  instructions  of  the 
seller  to  the  bank. 


(14] 


[15] 


INTENTIONAL  SECOND  EXPOSURE 


Commercial  Drafts 

The  foreign  Commercial  Draft,  which  for  many  years  has  been  the  commonest 
form  of  payment  for  a  shipment  to  a  foreign  country,  is  similar  to  the  ordinary 
Domestic  Commercial  Draft.  The  principal  differences  are,  that  it  covers  a  foreign 
transaction  and  is  drawn  on  a  foreign  drawee,  that  it  may  be  drawn  in  the  currency 
of  the  buyer's  country  or  in  that  of  the  seller's,  depending  on  the  terms  of  sale,  and 
that  it  is  drawn  in  duplicate  as  a  protection  against  loss  or  delay  in  payment,  the 
duplicate  being  sent  by  the  mail  following  that  by  which  the  original  is  forwarded. 
Payment  or  acceptance  of  either  renders  the  other  null  and  void. 

Commercial  Drafts  drawn  without  shipping  documents  attached  are  known  as 
"clean"  drafts,  while  those  with  shipping  documents  attached  are  known  as  "docu- 
mentary" drafts.  These  drafts  when  drawn  upon  responsible  individuals  or  busi- 
ness houses,  and  with  shipping  documents  attached,  if  a  documentary  draft,  opens 
to  the  seller  various  possibilities  for  banking  advances  and  discounts,  by  means  of 
which,  under  the  proper  conditions,  the  exporter  is  able  to  realize,  fully  or  in  part, 
on  the  sale  of  his  goods  as  they  are  shipped.  When  negotiated  by  a  bank,  drafts 
drawn  in  foreign  currencies  are  bought  at  the  current  rate  for  30,  60  or  90  day  bills, 
depending  on  the  usance,  while  dollar  drafts  are  either  discounted  by  the  bank  or  a 
loan  is  made  and  the  collection  is  taken  as  collateral.  In  every  instance,  however, 
the  time  required  for  the  bank  to  receive  the  fuhds  from  abroad  must  be  taken  into 
account  by  the  negotiating  bank. 

Following  are  given  a  number  of  samples  of  Commercial  Drafts  in  foreign  trans- 
actions, with  brief  descriptions  of  their  operation. 


& 


o 
o 

t 

o 


s 
u 

o 

0 


a 

r! 
o 
o 

*> 


KC5T  York,-  -  -  -  -  -Pebrwftr/  20, // IB 

-  .Ninety /^W  /^Z     sisht         /y////J  V\\t*!^'r 


1 


,rj 


•/^f   Messrs.  Santos  Hermanos, 


a:\^. 


Hio  Grande  do  Sul^^ 
Pratll 


\ 


lunufftcturera  Fxport  Company, 


Trensurer. 


,/<y 


Her  Tork,  -  - February  20, /./..\% 

tinety -  - ///^y  //////      eight        //////'^SVA.VfiiV% 

j|[^^HHH|M^ltandred  sixty  %v«  Don&rs,  ,.S&/o' 

•y^'}liesar&.  Santos  Herannoo,  .  i 

IfRnufftcturers  '?-:xport  •"onpany. 


Eio  Qraade  do  Sul, 
^1.%  -  Brs.il \ 


?re«.s\irsr. 


Commercial  Draft  Drawn  in  Dollars 

This  form  of  draft  is  used  when  the  shipper  desires  reim- 
bursement in  U.  S.  Dollars.  Such  drafts  are  generally  drawn 
at  sight,  or  at  30,  60  or  90  days  sight.  They  may  also  be 
drawn  at  30,  60, 90  or  120  days  date,  according  to  the  arrange- 
ment between  the  buyer  and  the  seller.  E  the  draft  covers  a 
shipment  of  merchandise  the  documents  relating  to  the  ship- 
ment are  usually  attached  and  are  surrendered  to  the  buyer 
of  the  merchandise  either  against  his  acceptance  of  the  draft, 
or  against  payment,  according  to  the  instructions  of  the 
seller  to  the  bank. 


Ml 


[14] 


[15] 


I 

I 


I 


r 


c 
o 

o 
u 

« 
c 


p 

5 


J<wr.  QEleaiuij^La.  r-  =...r.  -  -Ee^rvtary.  2Q,  ^ ji.-.  r-^^  W .' 


_•«  "  Sixty— ^_  •  ««„»_» 


•Z^"  leaden  Joint  City-4  Midland  B«ak,  Ud-,        --      ' 

London,   E-  C .  .  _  ' 

*  1/^1042  -  „ Bncland  | 


Louisiana  Cotton  Coin|>Rn7, 


Treasurer. 


.Jtes-Qrleaiui,  La.  - 


-  -  February  20,  -  -^  -.  /.9  JiS     .. 


-  -_-SlJrt.y  -  - 


•/^^  London  Joint  City  &  iULdlcnd  Bank,  Ltd.,  .' 

London,  T.  C. ,   . 


.V 


1042  - 


EnRlind 


Louisiana  Cotton  Conpany, 
Tree our sr. 


Draft  on  an  English  Bank  Against  a  Shipment 

of  Cotton  to  Liverpool 

The  above  is  a  form  of  draft  drawn  on  an  English  bank  against  a  shipment  of  cotton  to 
Liverpool.  A  buyer  in  England  has  arranged  for  his  bankers  to  accept  the  draft  of  the 
American  exporter,  made  out  in  pounds  sterling  with  documents  attached.  The  American 
exporter,  upon  closing  his  contract  for  the  sale  of  cotton  to  be  shipped  at  some  future 
time,  immediately  arranges  with  the  Guaranty  Trust  Company  of  New  York  for  the  sale 
of  his  sterling  draft  under  what  is  known  as  a  "future  contract."  This  enables  him  to 
establish  a  rate  at  which  he  will  receive  dollars  for  his  sterling  draft  when  shipment  is  made. 

Under,  these  contracts  the  American  shipper,  at  the  time  of  shipment,  draws  on 
the  Guaranty  Trust  Company  of  New  York  through  his  bank  or  bankers  in  the  form  of 
a  domestic  draft  in  dollars,  for  the  equivalent  of  the  sterling  draft,  figured  at  the  rate 
originally  fixed  in  the  "future  contract."  When  the  dollar  draft,  accompanied  by  the 
sterling  draft,  is  presented  for  payment  at  the  Guaranty  Trust  Company  of  New  York 
there  is  also  attached  an  invoice,  insurance  certificate  and  bill  of  lading,  making  a 
complete  set  of  shipping  documents.  If  these  are  in  order,  the  dollar  draft  is  paid  and 
retired.  The  sterling  draft  accompanied  by  the  other  documents  is  then  forwarded  to  one 
of  the  branches  of  the  Guaranty  Trust  Company  for  collection. 

[16] 


I 


© 

c 

•a 

O 


C 


C 


o 


u 

«) 


Her  York,   — Fobru-jry  20,   - 


//? 


W. 


-  -  -  -  -  -Thirty.  -  - 


'//f/  /'ff//n  /'rr/'//'/// /r//// /'/////f/r  /r///r/'/f////^ 

/f  Jtossrs. 


John  Snlth  &  Conpany, 
3.    1469  -  _  ,      Sydn.ey,  AuBlraJijai 


Frank!  in  !*ichinr*ry  Compemy,    Inc. 

Troas'jrer. 


.,Ko?r  York,.  -.     .-  -  -jr_  .-.-  Febru^rjr  20^.- .-.  -  /f^^.lS 


- jt.„-„-_..-_.r„-...-  -Thirtj'  -..-....-„.-.  -  - 


OK» 


teteiix 


•///Messrs.  .        I        ...       [ 

John  Smith  ft  Conpr.ny,  ,.  I  Franklin  Machinery  Coapany,   Inc. 

9    f. 


John  Smith  ft  Conpr.ny, 
1469  -  Sydney,  AuotrsH* 


Treasurer. 


Draft  in  Pounds  Sterling  for  Export  to  Australia 

or  a  British  Colonv 

The  above  is  a  specimen  of  a  draft  drawn  in  Pounds  Ster- 
ling against  a  shipment  of  merchandise  to  a  buyer  in  Australia. 

The  shipping  documents  are  generally  attached  to  the 
draft  and  surrendered  against  "acceptance"  or  "payment," 
according  to  the  instructions  of  the  shipper. 

These  drafts  often  contain  a  clause  similar  to  the  following: 


<< 


PAYABLE  WITH  EXCHANGE  AND  COLONIAL  STAMPS 


ADDED    TO    THE    CURRENT    RATE    IN    LONDON    FOR 
NEGOTIATING  BILLS  ON  THE  COLONIES." 

This  requires  the  buyer  of  the  goods  against  whom  the 
draft  is  drawn,  to  pay  Colonial  stamp  charges,  exchange  and 
interest  from  the  date  of  the  drafts  until  the  approximate  date 
of  receipt  of  funds  in  payment  in  London  or  New  York. 

[17] 


IHTEraiONAL  SECOND  EXPOSURE 


1 


§ 
u 

c 
o 
■p 
*> 
o 
a 

c 

ei 


3 
o 


/////^} /////Y  sight   /^M^  ^^i^mm^  ! 


■//''  London  Joint  City  4  Midland  'Uak,  Ui.^ J^- 4^ 


,ir'l042  . 


London,  E-  C  -  . 

England 


:^^ 


Loiiialnna  Cotton  Company, 


Treasurer. 


HftF-Cr leans,  Ia.  - 


Fabruary  20, 


/^19 


-  -Sixty  - 


•/^^  London  Joint  City  &  Midlaad  Bnnk,   Ltd.,    - 

London,  F.  C» , 
•  1,^1042  -  EnElftnd  1 


Louisiana  Cotton  Conpanjr, 
Trensurer. 


Draft  on  an  English  Bank  Against  a  Shipment 

of  Cotton  to  Liverpool 

The  above  is  a  form  of  draft  drawn  on  an  English  bank  against  a  shipment  of  cotton  to 
Liverpool.  A  buyer  in  England  has  arranged  for  his  bankers  to  accept  the  draft  of  the 
American  exporter,  made  out  in  pounds  sterling  with  documents  attached.  The  American 
exporter,  upon  closing  his  contract  for  the  sale  of  cotton  to  be  shipped  at  some  future 
time,  immediately  arranges  with  the  Guaranty  Trust  Company  of  New  York  for  the  sale 
of  his  sterling  draft  under  what  is  known  as  a  "future  contract."  This  enables  him  to 
establish  a  rate  at  which  he  will  receive  dollars  for  his  sterling  draft  when  shipment  is  made. 

Under  these  contracts  the  American  shipper,  at  the  time  of  shipment,  draws  on 
the  Guaranty  Trust  Company  of  New  York  through  his  bank  or  bankers  in  the  form  of 
a  domestic  draft  in  dollars,  for  the  equivalent  of  the  sterling  draft,  figured  at  the  rate 
originally  fixed  in  the  "future  contract.'*  When  the  dollar  draft,  accompanied  by  the 
sterling  draft,  is  presented  for  payment  at  the  Guaranty  Trust  Company  of  New  York 
there  is  also  attached  an  invoice,  insurance  certificate  and  bill  of  lading,  making  a 
complete  set  of  shipping  documents.  If  these  are  in  order,  the  dollar  draft  is  paid  and 
retired.  The  sterling  draft  accompanied  by  the  other  documents  is  then  forwarded  to  one 
of  the  branches  of  the  Guaranty  Trust  Company  for  collection. 

[16] 


o 

c 


«5 

i     § 


JS. 

o 

c5 


e 

r-l 
i      it 


t 


c 


c 

o 
o 

f       C 

c 
o 


r^ 
X 


IJer  York, 


Fobru^ry  20, 


/!^19 


-Thirty 


•  /<'  Messrs. 

John  Smith  &  Company, 
c/f.    1469  -_         _,  .      Sydaey,  Auslrnlia 


f 
I 


Franklin  Fftichlnrry  Company,    Tnc. 


Treasijrer. 


Ko?r  York,   - 


-  _  -  -  _  Febru^.-y  20^.- .-.-  y^!^.19 

- Thirty _  .   ./////JL^  //////'     si^ht       yO^/%f>  S KC'ON« 


21|^  hundred  and  seventy  ^^^^^i^^Hf^,     IS/jS'*^ 

•x/>  Messrs.  ]       ..,         >     ' 

Franklin  Machinery  Conpany,   Inc. 


John  Smith  *  Conpnny, 
•  T.    1469  -     .  Sydney,  Austr^lln  \ 


Treasurer. 


Draft  in  Pounds  Sterling  for  Export  to  Australia 

or  a  British  Colonv 

The  above  is  a  specimen  of  a  draft  drawn  in  Pounds  Ster- 
ling against  a  shipment  of  merchandise  to  a  buyer  in  Australia. 

The  shipping  documents  are  generally  attached  to  the 
draft  and  surrendered  against  "acceptance"  or  "payment," 
according  to  the  instructions  of  the  shipper. 

These  drafts  often  contain  a  clause  similar  to  the  following: 

"payable  with  exchange  and  colonial  stamps 
added  to  the  current  rate  in  london  for 
negotiating  bills  on  the  colonies." 

This  requires  the  buyer  of  the  goods  against  whom  the 
draft  is  drawn,  to  pay  Colonial  stamp  charges,  exchange  and 
interest  from  the  date  of  the  drafts  until  the  approximate  date 
of  receipt  of  funds  in  payment  in  London  or  New  York. 

[17] 


<       \\ 


IM 


I 


n 


Future  Contracts 

Exchange  Contracts  for  future  delivery  are  contracts  which  state 
that  the  contracting  parties  have  purchased  or  sold  foreign  money  at 
a  specified  rate  of  exchange  for  delivery  and  payment  at  some  given 
time  in  the  future.  This  sale  or  purchase  may  require  delivery  to  be 
made  in  bills  of  exchange  drawn  at  sight  or  time  with  documents  at- 
tached, or  it  may  call  for  a  banker's  draft,  cable  transfer,  or  either, 
depending  on  the  conditions  under  which  the  contract  is  made.  These 
contracts  are  made  primarily  to  protect  a  buyer  or  seller  against  losses 
in  exchange  through  fluctuation  in  the  exchange  rate  between  the  time 
the  merchant  sells  or  buys  the  goods  and  the  time  payment  is  made. 
For  example,  a  merchant  in  this  country  is  about  to  purchase  mer- 
chandise in  England  and  the  price  is  quoted  in  Pounds  Sterling.  He 
knows  at  this  time  what  the  cost  is  in  dollars  by  changing  the  Sterling 
into  Dollars  at  the  current  rate  of  exchange.  But  if  shipment  is 
not  to  be  made  from  abroad  for  two  months  and  payment  is  delayed 
accordingly,  he  must  make  a  contract  to  protect  himself  against  a 
fluctuation  in  the  exchange  rate.  Therefore,  he  arranges  a  contract 
for  the  future  delivery  of  Pounds  Sterling  at  a  specified  rate.  He  can 
then  purchase  his  goods  knowing  that  at  a  given  time  in  the  future. 
Pounds  Sterling  will  be  delivered  to  him  by  the  bank  at  the  contract 
rate,  and  that  the  cost  of  the  merchandise  will  not  be  affected  by  a 
fluctuation  in  the  exchange  rate. 

An  example  of  an  exchange  sold  contract,  which  is  the  reverse  of  a 
contract  to  purchase,  or,  in  other  words,  an  exchange  bought  contract, 
will  be  found  on  page  16. 

Many  people  believe  that  when  a  bank  makes  this  kind  of  con- 
tract, that  it  assumes  the  risk  that  the  merchant  would  ordinarily 
have  to  assume,  but  this  is  not  so,  for  contracts  to  sell  are  off-set  by 
contracts  to  buy,  and  the  bank  merely  acts  as  an  intermediary  between 
the  buyers  and  the  sellers  of  the  various  kinds  of  exchange. 


Collections  Payable  Abroad 

Collection  items  consist  largely  of  clean  or  documentary  drafts. 
Other  items  such  as  notes,  checks,  foreign  coupons,  bonds,  pension 
and  dividend  warrants  also  come  under  this  classification. 

A  large  portion  of  foreign  trade  is  financed  by  documentary  collec- 
tions, although  the  virtues  of  a  Commercial  Letter  of  Credit  are  known 
to  all  engaged  in  foreign  trade.  The  principal  reason  for  this  is  that 
the  buyer  can  usually  dictate  the  method  of  payment,  but  under 
some  circumstances  he  may  have  to  comply  with  the  terms  of  the 
seller.  It  is  obvious  that  the  seller  would  prefer  to  ship  under  a  Com- 
mercial Letter  of  Credit  as  he  would  receive  payment  as  soon  as  he 
presented  the  documents  at  the  bank  that  opened  the  credit.  He 
would  then  be  relieved  of  further  responsibility,  except  as  drawer,  if 
his  shipment  was  in  accordance  with  the  terms  of  his  credit  and  con- 
tract. Furthermore,  he  would  not  have  to  ask  the  bank  to  discount 
his  draft  or  to  loan  on  the  collection,  thereby  using  part  of  the  credit 
facilities  granted  him. 

The  reverse  is  true  of  the  buyer,  for  when  he  has  to  open  a  credit 
he  must  ask  credit  of  his  bank  which  would  doubtless  lessen  the 
amount  of  credit  required  by  him  for  other  operations.  Another  im- 
portant factor  is  that  many  shipments  are  sold  before  they  arrive, 
and  in  this  instance  the  collection  is  especially  desirable  to  the  buyer, 
for  he  would  not  require  any  assistance  from  his  bank. 

Clean  drafts  are  used  to  a  great  extent  in  adjusting  open  accounts, 
such  as  in  making  a  periodical  settlement  of  a  balance  arising  from 
reciprocal  shipments  of  merchandise  over  a  certain  i)eriod.  This  is 
especially  true  of  business  houses  having  branches  abroad  as  well  as 
long  established  concerns  enjoying  complete  confidence  in  each  other. 

Exphcit  instructions  to  the  bank  should  always  accompany  the 
drafts  forwarded  for  collection,  and  for  this  purpose  the  Guaranty 
Trust  Company  of  New  York  furnishes  its  clients  with  a  form  letter  of 
instructions  covering  the  various  phases  of  collection,  remittance,  and 
control  of  merchandise  for  the  guidance  of  the  shippers,  a  facsimile 
of  which  is  shown  on  page  21. 


[18] 


[19] 


il 


-^ 


f 


■M 


'■* 


!l 


i 


Collections  Received  from  Abroad 

Incoming  collections  consist  of  practically  the  same  kind  of  items 
mentioned  under  "Collections  Payable  Abroad/'  All  of  these  items 
are  governed  by  the  regulations  of  the  Custom  House,  Clearing 
House  and  Federal  Reserve  Bank. 

A  letter  of  instructions,  similar  to  the  form  on  page  21,  usually 
accompanies  the  collection,  the  terms  of  which  must  be  strictly  com- 
plied with. 

If  a  documentary  draft  is  sent  with  instructions  to  deliver  docu- 
ments against  payment,  the  bank  complies  with  these  instructions 
and  the  drawee,  or  payor,  can  then  clear  the  merchandise  through  the 
Custom  House  as  the  bank  would  have  no  further  interest  in  the 
transaction.  Should  the  customer  refuse  payment  of  the  item,  the 
bank  to  protect  its  clients  abroad  would  clear  the  merchandise,  cover 
it  suflficiently  with  insurance  and  store  it  in  a  responsible  warehouse. 
Notice  would  then  be  sent  to  its  clients  abroad,  and  the  foreign  cus- 
tomer would  advise  the  disposition  to  be  made  of  the  merchandise. 

When  the  draft  is  sent  for  acceptance,  it  depends  on  the  instruc- 
tions whether  the  merchandise  is  released  upon  acceptance  or  upon 
final  payment.  Usually  the  documents  are  released  against  accept- 
ance, for  this  gives  the  acceptor  an  opportunity  to  dispose  of  the  mer- 
chandise before  the  draft  matures. 


January  2, 


19- 


21 


[20] 


GUARANTY  TRUST  COMPANY  OF  NEW  YORK, 

140  Broadway,  New  York  City 

Dear  Sirs: 

We  enclose  for  r— r—  the  undermentioned  draft  with  documents  as  enumerated. 

Collection 

The  surrender  of  documents  to  drawees  is  conditional  upon  fulfillment  of  instructions  as 
indicated  by  cross  (x)  in  margin. 


DRAl-T 

NUMBER 

DOCUMENTS 

No.           2d8 

0 

Commercial  Invoice 

Drawer     John  Brown  &  Co. 

J ' 

Consular  Invoice 

Drawee     Chinese  Trading  Co, 

S 

Bills  of  Lading 

City  Where  Payable     Shanghai,  China 

) 

Insurance  Certificate 

Date          Aug.  7,  19:^0 

— 

Certificate  of  Origin 

Amount     U.  S.  $10,3J,2.10 

— 

Weight  Certificate 

Drawn  at  120  d/d     ^ 

— 

Declaration  of  Shipi)er 

INSTRUCTIONS 


-Paymeat- 

S  Documents  agamst    . 

Acceptance. 

_^  ,      Non-Pavment 

K  Protest  for  r^ — ^ — ^ 

Non  Aoooptanooi 

H  Permit  Drawee  privilege  inspecting  merchandise  before  accepting  draft. 

K  Hold  for  arrival  of  goods. 

S  Payable  at  collecting  banks  selling  ^  . ,     rate  on  New  York  day  of  payment. 

S  Payable  at  Check  rate  on  New  York,  remitting  proceeds  by  cable,  charges  for  our  account. 

K  Interest  to  be  collected  at %from  date  of  issue  until  approximate  arrival  cover 

in  New  York. 

S  Allow  Drawee  interest  at ?- %  per  annum  for  anticipatefl  payment. 

__  .  „    ^  .  .  Dpttwcp 

IS  AH  charges  are  for  account  of 

Drawee. 

S  Waive  charges  if  refused  by  Drawee. 

la  In  case  of  need  refer  to     Americmi  Export  Co.  Shanghd    .„^,;  ^^j^j,^  immediately  h/^^ 

CabJe. 

S  SPECIAL  INSTRUCTIONS. 

Kindly  collect  this  draft  through  the  Asia  Banking  (^or juration,  Shanghai. 


Yours  truly. 


J.  BROWN  i&  CO. 


[21] 


1 


n 


!f' 


i 

i 


li? 


Commercial  Letters  of  Credit 

Letters  of  Credit  came  into  general  use  only  recently.  A  score  of  years  ago 
most  importations  and  exportations  were  financed  by  other  and  less  favorable 
means,  chiefly  by  that  method  under  which  the  seller  of  the  merchandise  drew  his 
draft  on  the  buyer.  To  the  seller  this  involved  an  element  of  risk,  as  he  had  to 
depend  upon  the  responsibility  of  the  buyer.  In  view  of  this,  the  banks  to  whom 
such  drafts  were  offered  for  negotiation  were  reluctant  to  discount  them,  or  would 
take  them  for  collection  only,  and  the  seller  was  obliged  to  await  remittance  of  the 
proceeds  from  abroad. 

The  alternative  to  this  method  was  that  of  making  payment  in  advance  for 
merchandise  purchased  abroad  through  remittance  of  funds  either  by  mail  or  cable. 
This  placed  the  burden  on  the  purchaser,  as  he  had  to  depend  upon  the  assurance 
of  the  seller  that  he  would  actually  receive  merchandise  or  documents  representing 
a  shipment  of  merchandise.  Which  of  these  two  methods  was  employed  depended 
upon  whether  the  buyer  or  seller  was  in  the  position  to  dictate  terms.  Under  either 
of  these  methods  the  burden  of  financing  the  merchandise  in  transit  generally 
had  to  be  borne  by  one  of  the  two  parties  directly  interested.  These  disadvantages 
served  to  retard  rather  than  to  stimulate  trade. 

Through  the  adoption  of  bankers'  commercial  Letters  of  Credit,  the  buyer  and 
seller  no  longer  view  each  other  with  uncertainty,  and  neither  is  obliged  to  tie 
up  his  capital  while  the  goods  are  in  transit. 

The  principal  advantages  of  such  Letters  of  Credit  are: 

(1)  The  seller  has  the  guarantee  of  the  bank  issuing  the  credit  that  drafts 
drawn  will  be  honored,  provided  he  fulfills  the  conditions  of  the  credit. 

(2)  The  buyer  has  the  assurance  that  he  will  receive  value  in  the  form  of 
documents  representing  shipment  of  merchandise. 

(3)  The  seller  has  no  difficulty  in  discounting  his  drafts  with  his  local 
bankers;  while  the  buyer  does  not  pay  for  his  purchase  until  the  arrival 
of  the  documents,  or  perhaps  later. 

All  commercial  credits  come  under  two  general  classifications:  "Clean"  or 
"Documentary."  Drafts  drawn  under  a  "clean  credit"  are  negotiated  without 
documents,  while  drafts  drawn  under  a  "documentary  credit"  must  be  supported 
by  the  relative  shipping  documents  specified  by  the  terms  of  the  credit. 

Letters  of  Credit  are  either  "revocable"  or  "irrevocable,"  depending  on  whether 
the  establisher  of  the  credit  reserves  the  right  to  revoke  it  before  its  stated  date  of 
expiration. 

[22] 


The  Revocable  Export  Credit 

On  page  24  is  shown  a  form  of  a  sight  export  credit,  opened  by  a  foreign  buyer 
through  the  Guaranty  Trust  Company  of  New  York,  in  favor  of  a  manufacturer, 
exporter,  or  shipper  in  the  United  States. 

The  specimen  shown  is  a  sight  revocable  credit,  which  means  that  although  a 
date  of  expiration  is  placed  on  the  credit,  it  is,  nevertheless,  subject  to  cancellation 
at  any  time. 

We  do  not  advise  the  acceptance  by  American  shippers  of  a  revocable  credit, 
in  view  of  the  great  danger  of  having  it  cancelled  after  the  merchandise  is  shipped 
and  before  payment  is  effected.  The  preferable  method  is  for  the  American  exporter 
to  utilize  irrevocable  or  confirmed  credits. 

The  Irrevocable  Export  Credit 

On  page  25  is  shown  a  specimen  of  a  sight  irrerocahle  export  credit  op^ened  by 
one  of  our  foreign  correspondents  for  account  of  a  foreign  buyer  in  favor  of  a  firm 
of  exporters  in  the  United  States. 

This  credit  differs  from  the  sight  revocable  export  credit,  shown  on  the  pre- 
ceding page,  in  that,  as  a  sight  irrevocable  credit,  it  cannot  be  cancelled  prior  to 
the  date  specified  in  the  credit,  without  the  consent  of  the  party  in  whose  favor 
it  is  issued. 

This  form  of  credit  is  the  best  and  safest  method  for  the  American  shipper. 
Once  having  received  the  credit,  he  can  proceed  with  the  shipment  of  the  mer- 
chandise with  full  knowledge  that  his  drafts  will  be  paid,  provided  the  terms  of 
the  credit  are  strictly  fulfilled.  In  this  connection,  it  might  also  be  well  to  point 
out  that  American  b^ks  in  issuing  export  letters  of  credit  are  acting  merely  as 
agents  for  their  foreign  correspondents  and  are  not  in  any  way  authorized  to  alter 
the  terms  or  conditions  of  the  credit.  It  is  well,  therefore,  that  the  American 
exporter  take  up  any  irregularities  or  points  which  he  feels  are  not  in  accordance 
with  his  contract  before  eflFecting  shipment,  so  that  these  matters  can  be  adjusted 
prior  to  the  presentation  of  the  documents. 


■  r 


[23] 


i 


:ii 


Fifth  Avenue  Office 
Ftf  th  Avenue  and  43r«  St. 


Madleon  Avenue  Office 
M Art t  son  Avenue  and  CQiiiSi 

CaMc  AddrMa.'Pid.btu" 


Guaranty  Trust  Company  of  New  York 

140  Broadway 
Capital  ^  25,000.000.    Surplus  $  25.000,000. 

Msmber  of  Federal  Reserve  System 

Cable  Address'Fidelitas" 


London  Office 
32  Lombard  Street.  E  C 

Cafel*  Addrpsatiamiua' 


New  York      February  26,  1920 


Paris  Office 
Rue  dea  Iiallens  i  A  3 

Cablr  Addrvss"C*rr<iu*' 


Pleasp  address  reply  to 

(iuumnty  Tnisl  Company  of  New  York 

Fiireign  Departineiit 


EXPORT  CREDIT 


To- 


The  United  States  Mercantile  Co., 

140  Broadway y 

New  York  City 


No.. 


Ex-60001 


Dear  Sir: 

In  accordance  with. 


cable 


-instructions  received  from. 


Banco  MercantU 


Americano  de  Colombia,  Bogota 


we  open  a  revocable  credit  in  your  favor  for  account  of- 

Company,  Bogota,  Colombia 

Amount  f    ^'^0,000-00        {  Fiflv  thousand 


The  South  American  Import 


1  •  .    f     coffee  cleaning  machinery  from  New  York  to  BarranquiUa,  Colombia 


-Dollars) 


Drafts  under  this  Letter  of  Credit  are  to  be  drawn  at^ 


-sight  on___Jff_ 


and  are  to  be  accompanied  by  a  set  of  Shipping  Documents 


of  a  character  which  must  meet  with  our  approval,  consisting  of: 
Shipper's  invoices 


Consular  invoices  if  such  documents  are  required  in  connection  with  this  shipment. 

Marine  and  War  Risk  insurance  policies 

Full  set  of  ocean  steamer  Bills  of  Lading "^^  ^^  ^  ^'"^^  "^  "^^"^^  ^^  ^^^^>  ^^  ^^  *^' 


order  of  the  Banco  MercantU  Americano  de  Colombia 


Seaworthiness  admitted  as  between  insurer  and  insured. 


This  Letter  of  Credit  is  VaUd  only  upon  there  having  been  issued  an  appropriate  Export 
License,  covering  the  transaction. 

It  must  be  understood  that  payments  under  this  Credit  will  only  be  made  provided  the  goods 
are  actually  on  board  or  loading  on  the  Vessel  named  in  the  B/L. 

If  Government  regulations  restrict  the  issue  of  order  Bills  of  Lading,  please  communicate 
with  us  and  we  will  advise  you  in  the  premises. 

Marine  insurance  should  cover  from  Warehouse  to  Warehouse,  and  not  less  than  ten  days  after 
arrival,  and  also  include  deviation  clause,  craft  and  lighter  clause,  negligence  and /or  latent  defect 
clause.  Policies  reading  Free  of  Particular  Average  completely,  must  not  be  tendered  without 
prior  arrangement  with  us. 

This  Letter  of  Credit  is  issued  subject  to  all  regulations  and  enactments  of  the  United  States 
Government  and  its  Alhes  and  to  any  proclamations  of  the  President  governing  export  shipments. 

The  documents  should  be  presented  whenever  possible  in  time  to  be  forwarded  on  the  steamer 
carrying  the  merchandise. 

This  Letter  of  Credit  expires '^^^^  ^^>  ^^^^ unless  sooner  revoked. 

If  you  are  unable  to  comply  with  the  terms  as  indicated  above,  please  communicate  with 
us  promptly,  and  oblige, 

Yours  respectfully. 


Guaranty  Trust  Company  of  New  York 
[24] 


Fifth  Avenue  Office 
Fifth  Avenue  and  43!4  St. 

Ca>M«  A<ldrau:*Molranoo'' 


Guaranty  Trust  Company  of  New  York 

140  Broadway 
Capital  $  25,000.000.    Surplus  $  25.000.00a 

Member  of  Federal  Reserve  System 

Cable  AddresBrTidelitas" 


London  Office 
32  Lombard  Street  EC 

CaMaAddrraa  T.amnMi' 


Madison  Avenue  Office 

Madison  Avenue  and  QOPf  St. 

Catto  AddrMs  "ndaUtu" 


Please  address  reply  to 

Guaranty  Trust  Company  of  New  York 
Foreign  Department 


New  York   February  26,  1920 


Pans  Office 
Rue  des  ttallens  I&  3 

C  Able  Addr^««~0«m(u« 


EXPORT  CREDIT 


To. 


The  American  Export  Association, 


140  Broadway, 


New  York  City 


No.. 


c-eoooo 


Dear  Sir: 

In  accordance  with- 


cable 


-instructions  received  from. 


Banco  Merrnvtil 


Americano  del  Peni,  Lima,  Peru 


we  open  an  irrevocable  credit  in  your  favor  for  account  of. 

Company,  Lima,  Peru 


The  South  American  Import 


(  One  hundred  thousand 


Amount  f^^JOO^W 

covering  shipment  pf    general  merchandise  from  New  York  to  CaUao,  Peru 


Drafts  under  this  LettCT  of  Credit  are  to  be  drawn  at 


-Dollars) 


sight  on 


us 


-and  are  to  be  accompanied  by  a  set  of  Shipping  Documents 


of  a  character  which  must  meet  with  our  approval,  consisting  of: 
Shipper's  invoices  _ 


Consular  invoices  if  such  documents  are  required  in  connection  with  this  shipment. 
Marine  and  War  Risk  insurance  policies 


Full  set  of  ocean  steamer  Bills  of  Lading    ^^"  ^^  ^  ^^^^  ^^  ^^^"^^  ^^  ^^^^^'  "^  ^  *^^ 

order  of  the  Banco  MercantU  Americano  del  Peru 

Seaworthiness  admitted  og  between  insurer  and  insured. 

This  Letter  of  Credit  is  Valid  only  upon  there  naving  been  issued  an  appropriate  Export 
License,  covering  the  transaction. 

It  must  be  understood  that  payments  under  this  Credit  will  only  be  made  provided  the  goods 
are  actually  on  board  or  loading  on  the  Vessel  named  in  the  B  /L. 

If  Government  regulations  restrict  the  issue  of  order  Bills  of  Lading,  please  communicate  with 
us  and  we  will  advise  you  in  the  premises. 

Marine  insurance  should  cover  from  Warehouse  to  Warehouse,  and  not  less  than  ten  days 
after  arrival,  and  also  include  deviation  clause,  craft  and  lighter  clause,  negligence  and /or  latent 
defect  clause.  Policies  reading  Free  of  Particular  Average  completely,  must  not  be  tendered  with- 
out prior  arrangement  with  us. 

This  Letter  of  Credit  is  issued  subject  to  all  regulations  and  enactments  of  the  United  States 
Government  and  its  Allies  and  to  any  proclamations  of  the  President  governing  export  shipments. 

The  documents  should  be  presented  whenever  possible  in  time  to  be  forwarded  on  the  steamer 
carrying  the  merchandise. 

This  Letter  of  Credit  expires "^^^^  ^^>  ^^^^- 

If  you  are  unable  to  comply  with  the  terms  as  indicated  above,  please  communicate  with 
us  promptly,  and  oblige. 

Yours  respectfully. 

Guaranty  Trust  Company  of  New  York 

[25] 


f 


|i 


Import  Credits 

The  modus  operandi  of  an  Import  Letter  of  Credit  and  the  several  steps  leading 
up  to  the  opening  of  an  Import  Letter  of  Credit,  as  viewed  from  the  buyer's  stand- 
point, are  as  follows: 

(1)  Negotiations  between  buyer  and  seller  regarding  merchandise,  terms  of 
sale,  methods  of  payment,  etc.  Upon  closing  the  contract  it  is  agreed 
that  payment  will  be  made  by  draft  drawn  against  approved  bank's 
Letter  of  Credit.  ( 

(2)  The  buyer  applies  to  his  bank  for  a  Letter  of  Credit  (see  specimen  of 
application  form). 

(3)  Credit  issued  by  the  bank;  beneficiary  notified  either  by  mail  or  cable; 
client  signs  "obligation  form,"  agreeing  to  protect  the  bank  in  con- 
sideration of  its  having  issued  Credit. 

(4)  Seller  prepares  merchandise  for  shipment,  obtains  bills  of  lading  from 
steamship  company,  as  well  as  consular  invoice  certified  by  U.  S. 
Consul,  and  other  requisite  documents;  then  submits  draft  and  docu- 
ments to  his  local  bank  for  negotiation.  The  local  bank  discounts  the 
draft  and  the  seller  receives  the  proceeds  immediately. 

(5)  Draft,  with  documents  attached,  is  remitted  by  foreign  bank  for 
presentation  to  the  Guaranty  Trust  Company  of  New  York.  Upon  pres- 
entation, the  documents  are  examined  to  determine  if  the  conditions 
of  the  Credit  have  been  complied  with;  upon  verification,  draft  is  ac- 
cepted and  client  is  notified  of  acceptance  of  the  draft  and  arrival  of 
the  documents. 

(6)  Client  applies  to  the  bank  for  surrender  of  the  documents  which  is  made 
under  one  of  several  conditions,  viz. : 

A.  Against  the  payment  of  draft; 

B.  Under  a  temporary  arrangement  to  enable  client  to  warehouse  mer- 
chandise and  deposit  warehouse  receipts  with  bank.  In  this  in- 
stance client  signs  a  "  Trust  Receipt  for  Warehousing"  (see  page  54). 

C.  In  the  event  of  goods  being  sold,  the  merchandise  is  released  tem- 
porarily without  payment  to  enable  the  client  to  effect  delivery  to 
purchasers;  and  proceeds  of  sale  to  be  used  to  liquidate  outstand- 
ing drafts;  clients  signs  "Trust  Receipt  for  Purchaser"  (see  page 
53).  Occasionally  client,  upon  rendering  invoices  to  the  parties  to 
whom  he  re-sold  the  merchandise,  will  stamp  such  invoices  "  Trans- 
ferred and  made  Payable  to  Guaranty  Trust  Company  of  New 

[26] 


York— Remit  Payment  direct  to  it."  Under  this  latter  arrangement 
the  client  will  sign  a  form  of  Trust  Receipt  known  as  "Bailee 
Receipt"  (see  page  bb^  at  the  time  the  bank  surrenders  the  ship- 
ping documents  to  him. 

The  documents  are  sometimes  released  under  a  general  Trust  Re- 
ceipt; i.e.:  the  merchandise  is  held  by  the  client  in  trust  for  the 
Guaranty  Trust  Company  of  New  York.  This  form  of  Trust 
Receipt  is  not  quite  as  specific  as  the  previous  forms  mentioned 
as  to  the  disposal  of  the  merchandise.  All  of  the  forms,  however, 
agree  in  the  following  details:  The  title  to  the  merchandise  is  vested 
in  the  Guaranty  Trust  Company  of  New  York  until  the  drafts  are 
paid;  the  drafts  will  be  paid  at  maturity;  and  in  the  event  of  the 
merchandise  being  sold  prior  to  maturity,  the  bank  will  receive 
the  proceeds  of  the  sale. 

One  point  not  previously  discussed,  which  may  have  come  to  the  notice  of  the 
reader,  is  the  method  of  reimbursing  the  bank  abroad  which  originally  discounted 
tlie  draft.  At  the  maturity  of  the  draft  this  bank's  account  with  the  Guaranty 
Trust  Company  of  New  York,  or  that  of  the  bank  to  whom  the  draft  was  remitted 
for  collection,  will  be  credited  with  the  face  amount  of  the  draft.  Frequently  the 
remitting  bank  avails  itself  of  the  privilege  of  having  the  draft  discounted,  and 
the  proceeds  immediately  placed  to  the  credit  of  its  account  instead  of  waiting 
until  maturity. 

Current  funds  for  the  payment  of  a  draft  due  in  New  York  should  be  available 
to  the  drawee  bank  one  day  before  maturity.  If  the  draft  matures  abroad,  time 
should  be  allowed  for  the  transmission  of  the  funds. 

On  the  succeeding  pages  are  shown  an  Application  Blank,  Specimen  Letters 
of  Credit,  Obligation  Forms,  Trust  Receipts,  etc.  on  many  of  which  the  text  will 
l)e  found  self-explanatory. 

With  regard  to  Letters  of  Credit  issued  in  Pounds  Sterling,  it  will  be  noted, 
upon  consulting  the  specimen  shown  on  a  succeeding  page,  that  the  drafts  are 
drawn  on  the  Guaranty  Trust  Company  of  New  York,  London,  instead  of  New 
York,  as  is  the  case  with  dollar  credits.  One  set  of  documents  accompanies  the 
draft  to  London,  and  the  remaining  documents  are  forwarded  direct  to  New  York 
from  the  point  of  shipment  to  insure  receipt  of  documents  at  about  the  same  time 
as  the  merchandise. 

Letters  of  Credit  drawn  in  other  foreign  currencies  operate  in  about  the  same 
fashion  as  Sterling  Letters  of  Credit;  drafts,  however,  in  this  case  are  drawn  on 
Foreign  Correspondents  of  the  Guaranty  Trust  Company  of  New  York,  and 

accepted  by  them. 

[27] 


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Guaranty  Trust  Company  of  New  York 
APPLICATION  FOR  LETTER  OF  CREDIT 


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New  York,  _ 

Guaranty  Trust  Company  of  New  York 
Foreign  Department 

^^P2r? Division 

New  York  City 

Gentlemen; 

Please  issue  an  Irrevocable  Letter  of  Credit  by 

For  account  of 

In  favor  of — 


Jan.  2,  1921. 


cable 


John  SmUh  and  Co.,  Buenos  Aires,  Argentina 


sight 


Amount ^iO^OOO-OO available  by  drafts  at 

(sight,  thirty,  sixty  or  ninety  days) 

against  documents  as  follows: 

Bills  of  Lading  reading      Bills  of  Lading 
*  *  Received  for  Shipment' '  or 
otherwise  worded  to  same      Invoice 
effect  are  acceptable  against 
this  credit.  Consular  Invoice 

other  documents  ^                                    ~"    "         "    ' 
Full  invoice  value  of  C.  L  F.,  C.  fit  P.,  R  0.  D.,  P.  A.  0,  Shipments^ 


covermg 


75% 


(croes  out  all  but  one) 

800  Bags  Coffee 


Buenos  Aires 


to  be  shipped  from 

Drafts  to  be  negotiated  on  or  before- 
Insurance  to  be  effected  by 


-to- 


New  York  City 


March  31 ,  1921 . 
Shippers 


Partial  shipments  are  to  be  permitted. 
Special  Instructions 


(Shipper  or  Purchaser) 


J 


The  Letter  of  Credit  is  subject  to  your  usual  terms  and  conditions,  and  in 
consideration  of  the  issuance  thereof  we  agree  to  reimburse  you  on  demand,  and 
we  hereby  authorize  you  to  charge  our  account  with  you  with  any  and  all 
amounts  for  which  you  are  liable  thereunder,  plus  your  commission  and  charges. 

Neither  you  nor  your  correspondents  shall  be  responsible  for  the  description, 
quantity,  quality  or  value  of  the  merchandise  shipped  under  this  credit,  nor  for 
the  correctness,  genuineness  or  validity  of  the  documents,  nor  for  delay  or  devi- 
ation from  instructions  in  regard  to  shipment,  nor  for  any  other  cause  beyond 
your  control. 

Very  truly  yours. 

The  Guaranty  Trust  Company  of  New 
York  does  not  assume  responsibility  for 
any  inaccuracy,  interruption,  or  delay  in 
the  transmission  or  delivery  of  messages         — 
by  cable. 

[28] 


John  Smith  and  Co.. 


New  York  City 


Import  Letter  of  Credit  (Dollars) 


Credit  No._?M?Z 

p^^    S100,000~UJS.C. 

Messrs.  John  Doe  &  Company, 


Guaranty  Trust  Company  of  New  York 

Foreign  Department 


New  York,. 


February  11,  1921 


Yokohama,  Japan 


Gentlemen; 

At  the  request  and  for  the  account  of      ^^'''''  "^^^^^^  Crawford  &  Company,  New  York 

— we  hereby  authorize  you  to  value  on 

Guaranty  Trust  Company  of  New  York,  New  York 

by  your  drafts  at /^o^r  U)  Months  sight f^^.  ^^^  ^^^  ^^  ^^^^  ^^^^  exceeding  a  total  of 

One  hundred  thousand  dollars  ($100,000) 

accompanied  by  commercial  invoice,  consular  invoice,  bills  of  lading    Marine  and  war-risk,  in- 

surance  certificates 

r^pr^Q^nting  co^^>  insurance  and  freight         ghjpment  »f    Raw  Silk  from  Yokohama,  Japan,  to 

New  York 


Insurance Marine  and  war-risk  insurance  to  be  effected  by  the  shippers 


Bills  of  lading  for  such  shipments  must  be  drawn  to  the  order  of  The  Guaranty  Trust 
Company  of  New  York,  unless  otherwise  specified  in  this  credit. 

A  COPY  OF  THE  CONSULAR  INVOICE  AND  ONE  BILL  OF  LADING  MUST  BE  SENT  BY  THE  BANK 
OR    BANKER    NEGOTIATING     DRAFTS,    DIRECT  TO  THE  GUARANTY  TRUST  COMPANY  OF  NEW  YORK 
NEW  YORK. 

THE  AMOUNT  OF  EACH  DRAFT  NEGOTIATED  TOGETHER  WITH  THE  DATE  OF  NEGOTIATION 
MUST  BE  ENDORSED  HEREON. 

We  hereby  agree  with  bona  fide  holders  that  all  drafts  drawn  by  virtue  of  this  Credit, 
and  in  accordance  with  the  above  stipulated  terms,  shall  meet  with  due  honor  upon  presen- 
tation at  the  Guaranty  Trust  Company  of  New  York,  New  York,  if  drawn  and  negotiated  on 
or  before  ^^1/  31,  1919 

Guaranty  Trust  Company  of  New  York 

N.  B. — All  drafts  drawn  under  this  Credit  must 

bear  clause  "drawn  under  G.  T.  Co.  of 

N.   Y.    Letter   of   Credit    No.  J^^^^J— 

dated  New  York, ^^^-  ^^^  ^^^^ " 


to  cover  shipment  of- 
Yokohoma    ±^    New  York 


Raw  Silk 


-from 


[29] 


Iiii 


Dollar  Import  Letter  of  Credit  Agreement 


<t1 

I 

I 


New  York,. 


.192. 


To  THE 


Guaranty  Trust  Company  of  New  York 


'<! 


Gentlemen: 

Having  received  from  you  the  Letter  of  Credit  on account  of  which  a  true 

copy  is  on  the  other  side,  we  hereby  agree  to  its  terms,  and  in  consideration  thereof  Je  agree 
with  you  to  provide  in  New  York,  day  previous  to  the  Maturity  of  the  Bills  drawn  in  virtue 

thereof,  sufficient  fimds  in  cash,  to  meet  the  payment  of  the  same  with. 

per  cent,  commission,  and  Je  undertake  to  insure  at  SJ  expense,  for  your  benefit,  against 
risk  of  Fire  or  Sea,  all  property  purchased  or  shipped  pursuant  to  said  Letter  of  Credit,  ui 
Companies  satisfactory  to  you. 

We  agree  that  the  title  to  all  property  which  shall  be  purchased  or  shipped  under  the 
said  credit,  the  bills  of  lading  thereof,  the  poUcies  of  insurance  thereon  and  the  whole  of  the 
proceeds  thereof,  shall  be  and  remain  in  you  until  the  payment  of  the  bills  referred  to  and  of 
all  sums  that  may  be  due  or  that  may  become  due  on  said  bills  or  otherwise,  and  until  the 
payment  of  any  and  all  other  indebtedness  and  liability  now  existing  or  now  or  hereafter 
created  or  incurred  by  "J  to  you  on  any  and  all  other  transactions  now  or  hereafter  had 
with  you,  with  authority  to  take  possession  of  the  same  and  to  dispose  thereof  at  your 
discretion  for  your  reimbursement  as  aforesaid,  at  public  or  private  sale,  without  demand  or 
notice,  and  to  charge  all  expenses,  including  commission  for  sale  and  guarantee. 

Should  the  market  value  of  said  merchandise  in  New  York,  either  before  or  after  its 
arrival,  fall  so  that  the  net  proceeds  thereof  (all  expenses,  freight,  duties,  etc.,  being  deducted) 
would  be  insufficient  to  cover  your  advances  there  against  with  commission  and  interest,  ^e 
further  agree  to  give  you  on  demand  any  further  security  you  may  require,  and  in  default 
thereof  you  shall  be  entitled  to  sell  said  merchandise  forthwith,  or  to  sell  "to  arrive,"  irre- 
spective of  the  maturity  of  the  acceptances  under  this  Credit,  Je  being  held  responsible  to 
you  for  any  deficit,  which  we  bind  and  oblige  oSv4  to  pay  you  in  cash  on  demand. 

In  case  Je  should  hereafter  desire  to  have  this  credit  confirmed,  altered  or  extended  by 
cable  (which  will  be  at  ^  expense  and  risk),  Je  hereby  agree  to  hold  you  harmless  and  free 
from  responsibility  from  errors  in  cabling,  whether  on  the  part  of  yourselves  or  your  Agents, 
here  or  elsewhere,  or  on  the  part  of  the  cable  companies. 

This  obligation  is  to  continue  in  force,  and  to  be  applicable  to  all  transactions,  notwith- 
standing any  change  in  the  composition  of  the  firm  or  firms,  parties  to  this  contract  or  in  the 
user  of  this  credit,  whether  such  change  shall  arise  from  the  accession  of  one  or  more  new 
partners,  or  from  the  death  or  secession  of  any  partner  or  partners. 

[  FRONT  I 


130] 


It  is  understood  and  agreed  that  if  the  documents  representing  the  property  for  which 
the  said  Credit  has  been  issued  are  surrendered  under  a  trust  receipt,  collateral  security  satis- 
factory to  the  Trust  Company,  such  as  stocks,  bonds,  warehouse  receipts,  or  other  security 
shall  be  given  to  the  Trust  Company,  to  be  held  until  the  terms  of  the  credit  have  been  fully 
satisfied  and  subject  in  every  respect  to  the  conditions  of  this  agreement. 

It  is  further  understood  and  agreed  in  the  event  of  any  suspension,  or  failure,  or  assign- 
ment for  the  benefit  of  creditors  on  ^  part,  or  of  the  nonpayment  at  maturity  of  any 
acceptance  made  by  *Ss  ♦  or  of  the  nonfulfillment  of  any  obligation  under  said  credit  or  under 
any  other  credit  issued  by  The  Guaranty  Trust  Company  of  New  York  on  SS  account,  or  of 
any  indebtedness  or  liability  on  JJJ  part  to  you,  all  obligations,  acceptances,  indebtedness  and 
liabilities  whatsoever  shall  thereupon,  at  your  option  then  or  thereafter  exercised,  without 
notice,  mature  and  become  due  and  payable. 

It  is  understood  and  agreed  that  you  and  your  correspondents  shall  not  be  held  responsi- 
ble for  the  correctness  or  validity  of  the  documents  representing  shipment  or  shipments,  nor 
for  the  description,  quantities,  quality  or  value  of  the  merchandise  declared  therein. 


[31J 


I 


«l 


II 


Import  Letter  of  Credit  (Pounds  Sterling) 

Credit  No. ^^^678  Guaranty  Trust  Company  of  New  York 

Foreign  Department 

February  11,  1921 


For 


£200,000 


New  York,- 


Messrs.  Chas.  S.  Goodwin  &  Co. 


Colombo,  Ceylon. 


Crentlemen: 

At  the  request  and  for  the  account  r^f  Mes8Ts.  Charles  S.  Wheatherby  &  Co.,  Inc.,  New  York 

_  we  hereby  authorize  you  to  value  on 

Guaranty  Trust  Company  of  New  York,  32  Lombard  St.,  London 

by  your  drafts  at ^^^  ^^^  ^^^  ^'^^ for  any  sum  or  sums  not  exceeding  a  total  of 

Two  hundred  thousand  pounds  Sterling  (£200,000) 


accompanied  by  commercial  invoice,  consular  invoice,  bills  of  lading- 


representing    75%  cost  f.o.b. 


-shipment  nf  Crude  Rubber  from  Colombo,  Ceylon 


to  United  SUUes  Atlantic  Port 


Insurance     ^^^^^  Q^  war-risk  insurance  effected  in  New  York 


Bills  of  lading  for  such  shipments  must  be  drawn  to  the  order  of  The  Guaranty 
Trust  Company  of  New  York,  unless  otherwise  specified  in  this  credit 

A  COMMERCIAL  INVOICE,  CERTIFIED  COPY  OF  THE  CONSULAR  INVOICE  AND  ONE  BILL  OF 
IADIN6  MUST  BE  SENT  DIRECT  TO  THE  GUARANTY  TRUST  COMPANY  OF  NEW  YORK,  NEW  YORK. 
BY  THE  NEGOTIATING  BANK,  WHOSE  CERTIFICATE  TO  THAT  EFFECT  TOGETHER  WITH  THE 
REMAINING  DOCUMENTS  MUST  ACCOMPANY  YOUR  DRAFT. 

THE  AMOUNT  OF  EACH  DRAFT  NEGOTIATED  TOGETHER  WITH  THE  DATE  OF  NEGOTIATION 
MUST  BE  ENDORSED  HEREON. 

We  hereby  agree  with  bona  fide  holders  that  all  drafts  drawn  by  virtue  of  this  Credit, 
and  in  accordance  with  the  above  stipulated  terms,  shall  meet  with  due  honor  upon  presenta- 
tion at  the  Guaranty  Trust  Company  of  New  York,  London,  if  drawn  and  negotiated  on 
or  before  May  31, 1921 

Guaranty  Trust  Company  of  New  York 

N.  B. — ^All  drafts  drawn  under  this  credit  must 
bear  clause  "drawn  under  G.  T.  Co.  of 
N.  Y.  Letter  of  Credit  No 1^45678 

dated  New  YoT\i,—[^dhJ^l£. to 

cover  shipment  of Raw  Silk ^j.^^ 


Yokohama    ^^    New  York 


[32] 


Sterling  Import  Letter  of  Credit  Agreement 


New  York, 


.19. 


To  the 


Guaranty  Trust  Company  of  New  York 

Gentlemen: 

Letter  of  Credit  having  been  issued  at  ^r  request,  of  which  a  true  copy  is  on  the  other  side, 
le  hereby  agree  to  its  terms,  and  in  consideration  thereof  ^e  agree  with  you  to  provide  in  New 
York,  at  such  time  previous  to  the  Maturity  of  the  BiUs  draum  in  virtue  thereof  a*  may  be  decided 
by  you.  sufficient  funds  in  cash,  or  in  Bills  on  London,  satisfactory  to  you,  and  endorsed  by  J? 

to  meet  the  payment  of  the  same  with per  cent,  commission  and  interest  cw 

hereinafter  provided,  and  J«  undertake  to  insure  at  ^^  expense,  for  your  benefit,  against  risk  of 
Fire  or  Sea,  all  'property  purchased  or  shipped  pursuant  to  said  Letter  of  Credit,  in  Companies 
satisfactory  to  you. 

we  agree  that  Ike  title  to  all  property  which  shall  be  purchased  or  shipped  under  the  said 
credit,  the  bills  of  lading  thereof,  the  policies  of  insurance  thereon  and  the  whole  of  the  proceeds 
thereof y  shall  be  and  remain  in  you  until  the  payment  of  the  bills  referred  to  and  of  all  sums 
that  may  be  due  or  that  may  become  due  on  said  bills  or  otherwise,  and  until  the  payment  of 
any  and  all  other  indebtedness  and  liability  now  existing  or  now  or  hereafter  created  or  incurred 
by  ^  to  you  on  any  and  all  other  transactions  now  or  hereafter  had  with  you,  vrith  authority 
to  take  possession  of  the  same  and  to  dispose  thereof  at  your  discretion  for  your  reimbursement 
as  aforesaid,  at  public  or  private  sale,  urithout  demand  or  notice,  and  to  charge  all  expenses, 
including  commission  for  sale  and  guarantee. 

Should  the  market  value  of  said  merchandise  in  New  York,  either  before  or  after  its  arrival, 
^all  so  that  the  net  proceeds  thereof  {all  expenses,  freight,  duties,  etc.,  being  deducted)  would  he 
insufficient  to  cover  your  advances  thereagainst  vrUh  commission  and  interest  ^  further  agree 
to  give  you  on  demand  any  further  security  you  may  require,  and  in  default  thereof  you  shall 
be  entitled  to  sell  said  merchandise  forthurith,  or  to  sell  "to  arrive**  irrespective  of  the  maturity 
of  the  acceptances  under  this  Credit,  J«  being  held  responsible  to  you  for  any  deficit,  which  ,i 
bind  and  oblige  oll^s&  ^  pay  you  in  cash  on  demand. 


[33] 


I 


It  is  understood  thai  in  all  paynietUs  made  by  ^  to  you  in  the  United  States,  the  Pound 
Sterling  shall  he  calculated  at  the  current  rale  of  exchange  for  Bankers*  Bills  in  New  York  on 
London  existing  at  the  time  of  settlement,  and  that  interest,  if  any,  shall  he  charged  at  the  rate 
for  overdrafts  current  in  London,  at  the  time  of  settlement, 

Shovld  Je  anticipate  the  payment  of  any  portion  of  the  amount  payable,  interest  is  to  he 
allowed  at  a  rate  to  he  fixed  hy  the  Guaranty  Trust  Company  of  New  York. 

In  case  ie  should  hereafter  desire  to  have  this  credit  confirmed,  altered  or  extended  hy 
cable  {which  unll  he  at  ^r  expense  and  risk),  ie  hereby  agree  to  hold  you  harmless  and  free 
from  responsibility  from  errors  in  cabling,  whether  on  the  part  of  yourselves  or  your  Agents,  here 
or  elsewhere,  or  on  the  part  of  the  cable  companies. 

This  obligation  is  to  continue  in  force,  and  to  be  applicable  to  aU  transactions,  notwith- 
standing any  change  in  the  composition  of  the  firm  or  firms,  parties  to  this  contract  or  in  the  user 
of  this  credit,  whether  such  change  shall  arise  from  the  accession  of  one  or  more  new  partners,  or 
from  the  death  or  secession  of  any  partner  or  partners. 

It  is  understood  and  agreed  that  if  the  documents  representing  the  property  for  which  the 
said  Credit  has  been  issued  are  surrendered  under  a  trust  receipt,  collateral  security  satisfactory 
to  the  Company,  such  as  stocks,  bonds,  warehouse  receipts  or  other  security,  shall  he  given  to  the 
Company,  to  be  held  until  the  terms  of  the  credit  have  been  fully  satisfied  and  subject  in  every 
respect  to  the  conditions  of  this  agreement. 

It  is  further  understood  and  agreed  in  the  event  of  any  su,spension,  or  failure,  or  assign- 
ment for  the  benefit  of  creditors  on  ^  part,  or  of  the  nonpayment  at  maturity  of  any  acceptance 
made  hy  ^Hf ,  or  of  the  nonfulfillment  of  any  obligation  under  said  credit  or  under  any  other 
credit  issued  hy  the  Guaranty  Trust  Company  of  Neic  York  on  ^^  account,  or  of  any  indebted- 
ness or  liability  on  ow  part  to  you,  all  obligations,  acceptances,  indebtedness  and  liabilities  what- 
soever shall  thereupon,  at  your  option  then  or  thereafter  exercised,  without  notice,  mature  and 
become  due  and  payable. 

It  is  understood  and  agreed  that  you  and  your  correspondents  shall  not  be  held  responsible 
for  the  correctness  or  validity  of  the  documents  representing  shipment  or  shipments,  nor  for  the 
description,  quantities  or  quality  of  the  merchandise  declared  therein. 


Kindly  execute  above  fonn  and  return  to  Guaranty  Trust  Company. 


[34] 


Domestic  Credits 

Oftentimes  the  beneficiary  of  an  export  credit  will  require  a  subsidiary  domestic 
credit  opened  in  favor  of  his  supplier.  This  form  of  credit  is  usually  available  against 
domestic  documents  such  as  railroad  bills  of  lading  or  negotiable  warehouse  receipts, 
which  are  in  turn  exchanged  for  ocean  documents  required  by  the  terms  of  the 
original  export  credit. 

Revolving  Credit 

Revolving  credits  may  be  divided  into  four  classifications,  of  which  these  are 
examples: 

(a)  Where  a  credit  is  opened  for  say  $10,000  with  the  stipulation  that  the 
outstanding  drafts  drawn  thereunder  must  not  exceed  at  any  time 
the  face  amount  of  the  credit. 

(b)  Where  the  credit  is  opened  for  a  specific  amount  and  must  be  drawn 
for  in  total.  This  specified  amount  is  available  again  when  advice  is 
received  that  the  outstanding  draft  has  been  paid. 

(c)  Where  the  terms  of  the  credit  permit  the  beneficiary  to  draw  in  pay- 
ment of  his  invoices  any  amount  within  the  limit  of  the  credit,  where- 
upon the  credit  becomes  immediately  available  for  similar  drawings. 

(d)  Where  the  draft  may  be  drawn  for  a  specified  amount  weekly,  monthly 
or  even  annually,  as  the  terms  of  the  credit  may  indicate. 

This  latter  form  may  be  accumulative  or  non-accumulative;  meaning  that  if 
a  draft  is  not  drawn  during  one  week  the  amount  involved  would  accumulate  and 
be  available  the  next  week.  , 

Authority  to  Purchase 

An  Authority  to  Purchase  is  issued  by  a  foreign  bank  to  a  domestic  bank,  or 
by  one  domestic  bank  to  another,  authorizing  the  bank  addressed  to  negotiate  under 
the  issuing  bank's  protection  drafts  drawn  by  a  seller  on  a  buyer.  The  authority 
adds  to  the  negotiability  of  the  instrument;  the  rate  of  discount  comparing  favor- 
ably with  a  draft  drawn  directly  on  the  bank  itself. 

The  authority  states  the  terms  under  which  the  drafts  must  be  drawn,  including 
the  kind  of  documents  to  be  attached. 

The  principal  difference  between  an  Authority  to  Purchase  and  a  banker's  revo- 
cable or  irrevocable  letter  of  credit  is  that  the  issuing  bank  under  the  former  retains 
its  rights  against  the  seller  of  the  goods,  that  is,  the  drawer  of  the  bill;  whereas 

[35] 


under  a  letter  of  credit  the  seller  is  relinquished  from  all  liability  to  the  issuing  bank 
after  the  acceptance  or  payment  of  his  draft.  In  other  words,  the  negotiating  bank 
is  guaranteed  by  the  issuing  bank,  but  no  other  holder  of  the  bill  stands  in  a  similar 
position. 

The  advising  of  an  Authority  to  Purchase  as  in  the  case  of  the  advising  of  an- 
other bank's  letter  of  credit,  imposes  no  liability  on  the  advising  bank,  negotiation 
in  either  case  being  optional  on  its  part  and  with  full  recourse  to  the  drawer. 

At  times  an  Authority  to  Purchase  is  issued  without  recourse  to  the  drawer,  in 
which  case,  of  course,  after  the  negotiation  of  his  bill  he  has  no  further  liability  on 
the  instrument. 


[36] 


Acceptance  Credits 

The  financing  of  international  trade  and  domestic  transactions  involving  major 
staple  commodities  has,  in  the  last  few  years,  been  greatly  extended  by  the  estab- 
lishment of  the  Federal  Reserve  System,  and  by  the  use  of  acceptances. 

The  discount  facilities  now  available  make  it  possible  for  banking  institutions 
to  increase  their  ability  to  aid  in  the  financing  of  commercial  transactions  by  the 
use  of  their  credit.  This  is  accomplished  by  the  bank  accepting  for  account  of 
its  clients  drafts  drawn  in  accordance  with  the  regulations  of  the  Federal  Reserve 
Act,  thereby  placing  in  their  hands  an  instrument  upon  which  they  can  readily 
realize  cash  through  the  discount  market. 

The  most  common  form  of  acceptance  is  that  which  is  drawn  under  an  Import, 
Export  or  Domestic  Letter  of  Credit.  The  difference  between  this  acceptance  and 
the  form  shown  on  page  43  is  that  the  drafts  bear  the  notation  "Drawn  under 
Guaranty  Trust  Company  of  New  York  letter  of  credit  No.  000." 

It  must  describe  on  the  face  of  the  acceptance  the  nature  of  the  merchandise 
involved,  point  of  shipment  and  destination. 

The  purpose  and  methods  employed  in  the  use  of  acceptance  credits  are: 

An  acceptance  credit  may  be  revocable  or  irrevocable,  or  clean  or 
documentary  and  the  drafts  drawn  thereon  may  be  accepted  payable  at  a 
specified  time  from  the  date  of  the  draft  or  at  30,  60,  90  days  sight  and 
upwards  according  to  the  terms  of  the  credit.  When  accepted  by  members 
of  the  Federal  Reserve  System,  drafts  drawn  for  not  more  than  90  days, 
exclusive  of  days  of  grace,  are  eligible  for  rediscount  with  the  Federal 
Reserve  Banks  under  the  following  transactions: 

1.  When  they  arise  out  of  a  transaction  involving  the  importation  or 
exportation  of  goods; 

2.  When  they  arise  out  of  a  transaction  involving  the  domestic  shipment 
of  goods; 

3.  When  they  are  secured  by  readily  marketable  staples  in  storage,  or 

4.  When  drawn  for  the  purpose  of  furnishing  dollar  exchange. 

Drafts  drawn  or  issued  for  agricultural  purposes  or  based  on  live  stock 
may  have  a  maturity  at  the  time  of  discount  of  not  more  than  six  months, 
exclusive  of  days  of  grace.  Acceptance  credits  are  opened  in  precisely 
the  same  manner  as  import  and  export  sight  credits,  the  only  difference 
being  that  repayment  to  the  bank  is  not  made  until  the  draft  matures. 

[37] 


I 


Acceptance  Agreement 

On  pages  39,  40  and  41  we  show  a  copy  of  an  "acceptance 
agreement "  which  is  used  in  connection  with  acceptance  cred- 
its granted  for  the  purpose  of  financing  imports  or  exports  to 
or  from  the  United  States,  or  merchandise  stored  in  ware- 
houses in  this  country,  or  in  warehouses  in  other  countries, 
while  awaiting  shipment  to  the  United  States  or  another 
country. 

This  form  of  agreement  is  signed  by  the  cHent  of  the  Guar- 
anty Trust  Company  at  the  time  the  credit  is  arranged  for. 


C. 


[38] 


ACCEPTANCE  AGREEMENT 


.192 


For  and  in  consideration  of  the  acceptance  by  GUARANTY  TRUST  COMPANY  OF 
NEW  YORK,  of  my/our  draft  on  it  numbered dated 


-payable. 


Jor_ 


-Doll 


ars 


),  and  all  other  drafts  which  may  hereafter  be  accepted  by  the  Guaranty 

Trust  Company  of  New  York  at  my/our  request,  I/we  hereby  deposit  with  and  assign  and 
transfer  to  said  Trust  Company  as  collateral  security  for  the  payment  of  said  drafts  at  matur- 
ity, as  well  as  for  the  payment  of  any  and  every  debt  or  liability  of  every  nature  from  the 
undersigned  to  said  Trust  Company. 


with  such  additional  collaterals  as  may  from  time  to  time  be  required  by  any  of  the  officers 
of  said  Trust  Company,  and  which  the  undersigned  hereby  promises  to  furnish  on  demand. 
And  the  undersigned  hereby  gives  to  said  Trust  Company,  or  its  assigns,  full  power  to  sell, 
assign  and  deliver  the  whole  or  any  part  of  said  collaterals,  or  any  substitutes  therefor,  or  any 
additions  thereto,  at  any  Brokers'  Exchange  or  elsewhere  at  public  or  private  sale,  at  the 
option  of  such  holder,  on  the  non-performance  of  any  of  the  promises  herein  contained,  and 
without  notice  of  amount  due  or  claimed  to  be  due,  without  demand  of  payment,  without 
advertisement  and  without  notice  of  the  time  or  place  of  sale,  each  and  every  of  which  is 
hereby  expressly  waived;  and  on  any  such  sale  the  Trust  Company,  its  assigns  or  any  of  the 
officers  of  said  Trust  Company,  may  purchase  on  its  own  account  and  without  further  ac- 
countability except  for  the  purchase  price  thereof,  the  whole  or  any  part  of  the  property  sold 
free  from  any  right  of  redemption  on  the  part  of  the  undersigned,  which  right  is  herebv 
waived  and  released. 

It  is  further  agreed,  that  any  surplus  arising  from  the  sale  of  said  collaterals,  beyond  the 
amount  due  hereon,  shall  be  applicable  upon  any  claim  of  the  said  Trust  Company  arising 
directly  or  by  assignment  against  the  undersigned  at  the  time  of  said  sale,  whether  the  same 
be  then  due  or  not  due. 

And  it  is  further  agreed  that  any  moneys  or  properties,  at  any  time,  in  the  possession  of 
GUARANTY  TRUST  COMPANY  OF  NEW  YORK  belonging  to  any  of  the  parties  liable 
hereon  to  said  Trust  Company,  and  any  deposits,  balance  of  deposits  or  other  sum  at  any 
time  credited  by  or  due  from  said  Trust  Company  to  any  of  said  parties,  shall  at  all  times 
l)e  held  and  treated  as  collatei-al  security  for  the  payment  of  any  other  obligation,  indebted- 
ness or  liability  of  the  undersigned  to  the  said  Trust  Company,  whether  due  or  not  due,  and 
said  Trust  Company  may  at  any  time,  at  its  option,  set  off  the  amount  due  or  to  become  due 
hereon  or  any  other  obligations  against  any  claim  of  any  of  said  parties  against  said  Trust 
Company. 

And  I/we  also  agree  to  place  said  Trust  Company  in  possession  of  sufficient  funds  in  cash 
previous  to  the  maturity  of  said  draft,  and  of  any  other  drafts  which  the  said  Trust  Company 
may  hereafter  from  time  to  time  accept  to  meet  the  maturity  of  said  draft  or  drafts  respec- 
tively, together  with  commission  as  agreed  and  any  interest  which  may  accrue  thereon,  calcu- 

[ FRONT ] 

[39] 


# 

! 


lated  at  the  rate  of  6  per  cent.  (6%)  per  annum.  Any  and  all  drafts  or  bills  of  exchange 
now  or  hereafter  delivered  by  me/us  to  said  Trust  Company  to  be  collected  shall  be  delivered 
to  and  received  by  it  as  security  for  said  acceptance  or  acceptances  without  impairing  in  any 
way  my/our  obligation  hereunder  to  place  said  Trust  Company  in  funds  before  the  maturity 
of  said  acceptance  or  acceptances  as  aforesaid,  and  all  documents  relating  to  such  bills  for 
collection  shall  likewise  be  held  and  received  by  said  Trust  Company  as  security  with  the 
privilege  of  delivering  same  to  drawees  upon  acceptance  or  acceptances  unless  instructions 
to  the  contrary  shall  be  attached  to  each  bill. 

The  said  Trust  Company  shall  have  the  right  to  apply  the  proceeds  of  such  collections 
against  the  payment  of  said  acceptance  or  acceptances  and  of  any  other  indebtedness  due  or 
to  become  due  from  me/us. 

It  is  expressly  agreed  that  I/we  assume  all  responsibility  for  the  collection  of  drafts  or 
bills  delivered  as  aforesaid  and  for  any  loss,  costs  or  expenses  suffered  or  incurred  by  said  Trust 
Company  in  connection  therewith,  and  that  said  Trust  Company  shall  be  held  free  of  respon- 
sibility for,  and  my/our  obligation  to  place  said  Trust  Company  in  funds  as  aforesaid  shall 
not  be  affected  or  impaired  by,  any  default,  neglect,  suspension,  insolvency  or  bankruptcy 
of  any  correspondent  or  sub-agent  to  whom  said  bills  or  drafts  may  be  entrusted  for  collec- 
tion or  for  any  delay  in  remittance,  loss  in  exchange,  or  the  loss  of  the  said  drafts  or  bills  or 
their  proceeds  during  transmission  or  in  the  course  of  their  collection,  and  I/we  expressly 
agree  to  assume  all  responsibility  for,  and  that  my/our  said  obligation  to  said  Trust  Com- 
pany shall  not  be  affected  or  impaired  by,  the  non-payment  of  any  bills  of  exchange  which 
may  be  received  by  said  Trust  Company,  or  by  any  collecting  bank,  agent  or  sub-agent  in 
payment  of  such  drafts  or  bills  of  exchange. 

I/we  also  assume  all  responsibility  of,  and  said  obligation  to  place  said  Trust  Company  in 
funds  shall  not  be  affected  or  impaired  by,  any  risk  or  error  in  the  course  of  transmission  of 
telegrams  and  cablegrams  or  tlie  loss  of  letters  or  other  documents  which  may  be  sent  in  con- 
nection with  the  said  drafts  or  bills  for  collection. 

I/we  also  agree  that  in  the  event  that  any  of  the  said  Trust  Company's  correspondents, 
agents  or  sub-agents  for  collection  of  said  drafts  or  bills  shall  advise  it  that  any  of  said  drafts 
or  bills  are  not  promptly  accepted  or  paid,  or  in  the  event  of  the  suspension,  failure  or  assign- 
ment for  the  benefit  of  creditors,  or  by  the  filing  of  a  petition  in  bankruptcy  against  the  drawee 
or  the  drawees  of  any  of  said  bills  for  collection,  that  I/we  will  immediately  upon  receipt  of 
such  notice,  waiving  protest,  and  notice  of  protest,  pay  or  cause  to  be  paid  to  said  Trust  Com- 
pany in  cash  the  face  amount  of  any  such  draft  or  bill  for  collection  which  has  not  been 
accepted  or  the  drawee  of  which  has  suspended,  failed  or  assigned  or  against  whom  a  petition 
in  bankruptcy  has  been  filed  as  aforesaid. 

In  the  event  of  my/our  suspension,  failure  or  assignment  for  the  benefit  of  creditors,  or 
of  a  petition  in  bankruptcy  being  filed  against  me/us,  or  the  non-fulfillment  of  any  obligation 
hereunder  on  my/our  part  to  be  performed,  all  obligations  and  liabilities  to  said  Trust  Com- 
pany on  my/our  part  shall  immediately,  without  notice,  accrue  and  mature  and  become  due 
and  payable,  and  it  is  also  agreed  that  in  either  of  those  events,  said  Trust  Company  may  take 
such  action  with  respect  to  the  collection  of  any  or  all  of  said  drafts  and  bills  delivered  as 
aforesaid  for  collection  as  it  may  deem  advisable  to  protect  its  interests,  and  I/we  hereby 
agree  to  indemnify  and  save  said  Trust  Company  harmless  from  any  loss,  costs,  damage, 
expense  (including  reasonable  attorneys'  fees),  suffered  or  incurred  by  it  by  reason  of  such 
action  or  by  reason  of  my/our  failure  to  perform  any  of  the  obligations  arising  hereunder. 

This  obligation  shall  continue  in  force  and  remain  applicable  notwithstanding  any  change 
in  the  individuals  comprising  our  firm,  whether  such  change  shall  arise  from  the  accession  of 
one  or  more  new  partners  or  from  the  death,  retirement  or  succession  of  any  partner  or 
partners. 

All  rights  arising  under  this  agreement  shall  be  determined  according  to  the  laws  of  the 
State  of  New  York. 

[  FRONT — CONTINUED  ] 


140] 


An 


WHEREAS, 


the  undersigned  has/have  requested  the  Guaranty  Trust  Company  of  New  York  to  accept 

the  drafts  mentioned  and  described  in  the  acceptance  agreement  of 

dated  the day  of ^192 ,  printed  on  the  reverse  side  hereof,  and 

WHEREAS,  the  said  Guaranty  Trust  Company  of  New  York  is  willing  to  execute 
such  acceptances  provided  the  undersigned  will  unconditionally  guarantee  to  it  the  prompt 

payment  at  maturity  of  the  said  drafts  and  of  any  other  drafts  of 

which  the  said  Trust  Company  may  hereafter  accept  from  time  to  time. 

NOW.  IN  CONSIDERATION  OF  THE  PREMISES  and  of  the  sum  of  One  Dollar 
to  the  undersigned  in  hand  paid,  the  receipt  whereof  is  hereby  acknowledged,  the  undersigned 

do hereby  unconditionally  guarantee  to  the  said  Guaranty  Trust  Company  of 

New  York,  its  successors,  endorsees  and  assigns,  the  prompt  payment  at  maturity  of  any 
and  all  drafts  accepted  by  the  Guaranty  Trust  Company  of  New  York,  pursuant  to  said 
acceptance  agreement,  and  any  and  all  renewals  and  extensions  thereof,  the  prompt  perform- 
ance by . 

of  all  the  terms,  conditions  and  covenants  contained  in  said  acceptance  agreement,  and  the 
payment  of  every  debt  and  liability  of^ . . 

^to  the 

Guaranty  Trust  Company  of  New  York. 

The  undersigned  hereby  consents  to  any  renewal  and  extension  of  time  of  payment  of 
any  draft,  drafts  or  other  indebtedness  that  may  be  granted  by  the  Guaranty  Trust  Com- 
pany OF  New  York,  and  do also  consent  that  the  securities  set  forth  in  said  acceptance 

agreement  may  be  exchanged  or  surrendered  from  time  to  time  without  notice  to,  or  further 
assent  from  the  undersigned,  and  that  the  undersigned  will  remain  bound  upon  this  guarantee 
notwithstanding  such  changes,  surrenders,  renewals  and  extensions. 

The  undersigned  expressly  waives  presentment,  demand  of  payment,  protest  and  notice 
of  dishonor  of  said  drafts  and  acceptances  thereof,  and  does  also  waive  notice  of  the  non- 
performance on  the  part  of . 

of  any  of  the  provisions  or  covenants  of  the  aforesaid  acceptance  agreement  on  his/its/ their 
part  to  be  performed  and  notice  of  any  sale  of  the  collateral  securities  aforesaid. 

This  guarantee  is  made  without  any  limitation  as  to  duration  or  amount,  and  the  under- 
signed agree that  it  shall  continue  and  that  the  said  Guaranty  Trust  Company  of  New 

York  may  continue  to  act  on  the  faith  thereof  to  any  extent  until  such  time  as  the  said  Trust 
Company  shall  receive  from  me/us  written  notice  of  its  withdrawal:  which  notice,  however, 
shall  not  in  any  wise  affect  any  draft  and  acceptance  theretofore  made  or  any  other  liability 
theretofore  incurred,  whether  then  due  and  payable  or  thereafter  to  become  due  and  payable, 
and  not  fully  paid  at  the  time  of  the  receipt  by  the  said  Trust  Company  of  said  notice. 

The  undersigned  declares  to  and  covenants  with  the  said  Guaranty  Trust  Company 

OF  New  York,  its  successors,  endorsees  and  assigns,  that  the  undersigned  ha no  defense 

whatever  to  any  action,  suit  or  proceeding  at  law,  or  otherwise,  that  may  be  instituted  upon 
this  guarantee. 

This  guarantee  shall  be  construed  in  accordance  with  the  laws  of  the  State  of  New  York. 

IN  WITNESS  WHEREOF,  the  undersigned  ha set  his/our  hand and  seal 

this day  of 192 


[  BACK  ] 

[41] 


.(L.  S.) 


\i 


No.137- 


S  TRApE  ACCEPTANCE 


N&w  York,  l^Y.,  Jani;i«uy  10th, 


191-9- 


Due  April  10,1P10 
$15,300.00 


kafter~d&t 


ooAoo>- 


— pay  to  the  order  of  OURSELVES 

m-^m    m   -ML    »....«»-■«» — m m s m = as s-  1/OllftrS 


Uinety  day^— 7..--3'|.-— jj. 

FifJ:pQn^hqj«and^iair£i'§:^^ 

Thc^bligatij^  |f  th  jafccep^-  liemtfjnaes  out  of  the  purchase  of  goods  from  the  drawer,  maturity 
beifl  in  coi^i^tyci/ith  o^^flial  ^nrof  imrchaae.  The  drawee  may  accept  this  bill  payable  at 
any^Bsnk.  tnial  con^ipAy  o^D^eft  Mfice  in  the  United  States  which  he  may  designate. 

■<            ?»            as       ^^        g.-sf 
ToJBrami,  §l&qk_^o,_^ 11 .  a.   Blan^^ii^Cp.^ 


pLS7  r|lOyi^£Strfie|^. 


(SiinatuM  of  dra««r ) 


v^^ar]c> 


Troas. 


-orr 


I 


Form  of  Trade  Acceptance  Based  on 
Domestic  Sales  of  Merchandise 

This  form  of  acceptance  is  daily  becoming  more  popular. 
It  eliminates  the  old  system  of  "open  accounts."  Instead  of 
a  merchant  selling  to  a  buyer  on  60  days  open  account,  the 
buyer  accepts  a  draft  at  60  days  date  or  sight  which  the 
merchant  can  discount  with  his  bankers,  thus  avoiding  a 
tie-up  of  his  capital. 

The  Guaranty  Trust  Company  of  New  York  is  always 
ready  to  consider  the  discounting  of  trade  acceptances. 

To  those  who  are  not  fully  familiar  with  the  advantages 
to  be  gained  by  using  trade  acceptances  in  their  business  we 
shall  be  pleased  to  send  full  information  on  this  subject. 


f> 


[42] 


Ik. 


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Qftl«Mtoa,.  1<a»A  -  - .  -  _-F«bru'iry  20„ 


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-.Ipw  York 


Oftl-vevton  Cotton  Coeqpanjr, 


Form  of  Bank  Acceptance  Not  Based  on 

Imports  or  Exports  to  or  from  the 

United  States 

This  form  of  acceptance  is  used  in  connection  with  accept- 
ance credits  (not  letters  of  credit)  granted  for  the  purpose  of 
financing  stocks  of  staple  commodities  stored  in  warehouses, 
and  documentary  drafts  forwarded  for  collection.  To  those 
who  are  not  familiar  with  acceptance  credits,  and  not  fully 
aware  of  the  importance  of  such  facilities,  the  Guaranty  Trust 
Company  of  New  York  will  be  pleased  to  send  additional 
booklets  which  contain  full  explanations  regarding  accept- 
ance credits  and  acceptances. 


[43] 


INTENTIONAL  SECOND  EXPOSURE 


«— t 


o 


I  TRA^E  ACCEPTANCE 


No.137- 


Due  April  10,1P1C 
$15,300.00 


!  I        >4w  York.  ^ZY.,    lanua  y  lO^-h,         191-9- 

Ninety  d8ya---.--Q'*-»-^----«^i:^-after  4aue»--.  -  -pay  to  the  order  of  OURSELVES 


l« 


I '-gtrifiy^i^ij  00/lQO*„  •_»- «  j»  -^  * _-  -•  «  »  ^  «r  «  ~  »  -  Dollars 

Th^bligati^  |f  thS^ceptbrtiei^tfirises  out  of  the  purchase  of  goods  from  the  drawer,  maturity 
beiia  in  corflfoHnityrVith  ongfiial  M^te'of  purchase.  The  drawee  may  accept  this  bill  payable  at 
any^ank,  tni8|com(^y  oi^b^ke^Mlice  in  the  United  States  which  he  may  designate. 


To  Browrty  jllack  &  f  o .  ^ 


PQ 

_.     _.J*1157 r^Oth,,gSt,rae|,. 

<StrMt  mMnm)  £.  ••-  "^ 

4,  e«  -s  ^ 


(Siinature  of  drawtr  I 


* 


Form  of  Trade  Acceptance  Based  on 
Domestic  Sales  of  Merchandise 

This  form  of  acceptance  is  daily  becoming  more  popular. 
It  eliminates  the  old  system  of  "open  accounts."  Instead  of 
a  merchant  selling  to  a  buyer  on  60  days  open  account,  the 
buyer  accepts  a  draft  at  60  days  date  or  sight  which  the 
merchant  can  discount  with  his  bankers,  thus  avoiding  a 
tie-up  of  his  capital. 

The  Guaranty  Trust  Company  of  New  York  is  always 
ready  to  consider  the  discounting  of  trade  acceptances. 

To  those  who  are  not  fully  familiar  with  the  advantages 
to  be  gained  by  using  trade  acceptances  in  their  business  we 
shall  be  pleased  to  send  full  information  on  this  subject. 


[42] 


c 

c 


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4: 


or. 


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*>^  -C^W^  9^%^/'^'// r///// rA////if  //'//rr/^f/^/^^ 


rZO 


#-  r,,...Ae .  - New, .lork „. 


0«lT«8ton  Cotton  Coispanj', 
71a«-Pr««ld«ni. 


i 


Form  of  Bank  Acceptance  Not  Based  on 

Imports  or  Exports  to  or  from  the 

United  States 

This  form  of  acceptance  is  used  in  connection  with  accept- 
ance credits  (not  letters  of  credit)  granted  for  the  purpose  of 
financing  stocks  of  staple  commodities  stored  in  warehouses, 
and  documentary  drafts  forwarded  for  collection.  To  those 
who  are  not  familiar  with  acceptance  credits,  and  not  fully 
aware  of  the  importance  of  such  facilities,  the  Guaranty  Trust 
Company  of  New  York  will  be  pleased  to  send  additional 
booklets  which  contain  full  explanations  regarding  accept- 
ance credits  and  acceptances. 


1431 


n 


^ 


Advances,  Time  Loans  and  Loans  Against  Collections 
Advances 

Advances  are  practically  loans  payable  on  demand,  and  are  made: 

To  finance  merchandise  being  prepared  for  export,  usually  se- 
cured by  domestic  Bills  of  Lading  or  Warehouse  Receipts; 

To  finance  exports  of  various  commodities,  payment  for  which 
will  be  made  abroad,  upon  delivery  of  the  relative  documents; 

To  finance,  under  a  bank  guarantee,  a  customer  residing  abroad. 

To  finance  a  foreign  customer  against  deposit  of  suitable  securities 
with  a  bank  abroad  for  our  account; 

To  finance  imports  between  time  of  arrival  of  merchandise  and 
delivery  to  purchaser. 

Time  Loans 

Time  loans  are  made  under  the  same  conditions  as  those  men- 
tioned above,  except  that  they  have  a  definite  maturity. 

Collection  Loans 

Collection  loans  may  be  advances  or  time  loans.  They  are  se- 
cured by  documentary  drafts  forwarded  for  collection.  When  advice 
is  received  that  the  item  is  paid,  the  loan  or  a  part  thereof  is  liquidated. 


Shipping  Documents 

A  complete  set  of  shipping  documents  consists  of: 

Invoice. 

Complete  set  of  Ocean  Bills  of  Lading. 

Marine  and  War  Risk  Insurance  certificates  or  policies 

in  duplicate. 
Consular  Invoice. 

Other  documents,  such  as  an  Inspection  Certificate,  Analysis 
Certificate,  Weight  Certificate  and  Certificate  of  Origin  may  be  re- 
quired, according  to  the  terms  of  sale,  the  kind  of  product  shipped 
or  the  destination  of  the  shipment.  However,  the  majority  of  ship- 
ments require  only  the  four  documents  previously  mentioned. 

Invoice 

The  invoice  usually  contains  the  following  data: 

Date. 

To  whom  invoiced;  name  and  address. 

Name  and  address  of  Consignee. 

How  shipped,  name  of  steamer  and  route. 

Description  of  merchandise. 

Terms  of  sale. 

How  packed. 

Weights,  gross,  tare  and  net. 

Invoice  price  and  how  figured. 

Discounts  or  other  deductions  from  invoice  price,  also  petty 

charges  or  additions  all  itemized. 
Marks  and  numbers. 


\\ 


n 


[44] 


[45] 


Ilk. 


(il 


II 


Bills  of  Lading 

(Abbreviation  B/L;  plural  BS/L) 

An  ocean  bill  of  lading  is  tbe  most  important  of  the  shipper's  papers.  It  is 
customarily  drawn  up  by  the  shipper  on  forms  which  the  carrier  supplies,  and 
which  are  signed  by  the  latter  after  deUvery  of  the  dock  receipt  and  the  shipper's 
manifest.  Besides  being  the  final  receipt  from  the  carrier,  the  ocean  bill  of  lading 
constitutes  a  shipping  contract  between  the  carrier  and  shipper.  It  becomes  a 
negotiable  document,  and  may  be  used  by  the  shipper  as  the  basis  for  a  draft  if  it 
is  drawn  to  his  order.  It  is  not  the  usual  practice,  however,  for  the  ocean  bill  of 
lading  to  be  drawn  in  the  consignee's  name  unless  he  has  a  special  agreement  with 
the  shipper,  or  unless  advance  payment  has  been  made  or  security  arranged  before 
shipment.  The  basis  of  financial  settlement  most  commonly  employed  in  foreign 
trade  is  by  drafts,  or  bills  of  exchange,  to  which  have  been  attached  a  shipper's 
invoice,  insurance  policy,  and  ocean  bill  of  lading.  The  number  of  copies  of  the 
bill  of  lading  required  vary  according  to  the  nature  of  the  transaction.  Banks, 
if  settlement  is  to  be  made  by  draft,  will  require  two  or  more  negotiable  copies  and 
the  possession  of  all  the  negotiable  copies.  Non-negotiable  copies  will  also  be 
needed  by  the  shipper,  the  carrier,  and  the  consignee  for  filing,  and  by  foreign 
consuls  to  meet  the  provisions  of  the  law. 

An  export  bill  of  lading  is  used  in  cases  where  the  exporter  at  an  inland  point 
wishes  to  bill  his  goods  from  point  of  shipment  to  foreign  point  of  receipt,  port  or 
interior.  By  obtaining  a  through  bill  of  lading  from  a  railroad  the  exporter  obviates 
the  necessity  of  securing  a  railway  bill  of  lading  to  the  export  port,  and  then  an 
ocean  bill  of  lading  to  the  foreign  port  of  receipt.  The  export  bill  of  lading  consti- 
tutes a  triple  contract,  covering:  (1)  Shipment  by  rail  or  water  to  port  of  export; 
(2)  Shipment  by  sea;  (3)  Shipment  from  foreign  port  of  entry  to  inland  destination. 

A  parcel  receipt  is  issued  by  ocean  carriers  to  expedite  the  transportation  of  small 
packages,  most  commonly  samples,  although  general  merchandise  is  so  shipped  on 
occasions.  The  value,  weight,  and  dimensions  of  the  goods  carried  are  restricted. 
Parcel  shipments  are  designed  to  avoid  the  high  rates  that  would  have  to  be  paid 
for  small  lots  of  goods  under  the  minimum  freight  charge  usually  stipulated  in 
ocean  bills  of  lading,  imder  which  nothing  less  than  a  ton  rate  or  a  specified 
amount  would  be  accepted,  no  matter  how  small  the  consignment.  Numerous  ship- 
ping lines  are  now  using  these  receipts. 

The  matter  of  bills  of  lading  is  so  complex  and  includes  such  a  multitude  of 
conditions  governing  the  shipment  of  merchandise  that  it  is  impracticable  here  to 
reproduce  the  numerous  forms  that  are  in  use  by  the  shipping  companies  or  to  dis- 
cuss the  whole  subject  in  detail.  Ocean  Bills  of  Lading  are  not  uniform  like  railroad 
bills  of  lading.  Each  steamship  company  has  its  own  form  and  conditions  according 
to  the  countries  between  which  its  steamers  run.  Entirely  different  bills  of  lading, 
for  instance,  are  used  for  shipments  to  South  America  and  for  those  destined  to 
France  or  England,  although  both  bills  of  lading  may  be  issued  by  the  same  steam- 
ship company. 


[461 


IIl 


Marine  Insurance 


A  set  of  shipping  documents  is  never  complete  without  a  Marine  Insurance 
Policy  or  Certificate,  as  both  by  law  and  by  the  contract  provisions  of  their  bills 
of  lading  ocean  carriers  have  a  greatly  limited  liability. 

Marine  insurance  not  only  affords  protection  to  the  shipper,  consignee  and 
banker,  but  is  also  an  economic  factor  in  the  price  of  goods  since  it  eliminates  the 
risk  of  loss  to  the  consignor  in  case  of  non-delivery.  It  is  a  necessary  factor  in 
negotiating  credit  on  a  consignment. 

A  marine  insurance  policy  is  very  explicit  in  its  limitations.  Ordinarily  it  pro- 
vides for  payment  only  in  the  event  of  total  loss  of  the  shipment  through  "perils 
of  the  seas."  Such  insurance  is  usually  not  acceptable  to  bankers  who  require 
that  at  least  partial  loss  or  damage  to  the  shipment  through  "j>erils  of  the  seas" 
be  insured.  In  most  cases  this  can  readily  be  included  by  insertion  on  the  insur- 
ance certificate  of  a  "Particular  Average"  clause. 

In  addition  to  covering  loss  due  to  "jjerils  of  the  seas"  marine  insurance  can 
by  agreement  be  made  to  include  loss  through  "breakage  and  leakage"  and  "theft 
and  pilferage"  of  cases,  barrels,  etc.  or  their  contents.  The  amount  of  insurance 
may  include  freight  rates  and  profits,  but  usually  it  is  the  invoice  value  of  the 
shipment  plus  twenty  per  centum. 

Unless  specifically  stated  it  is  understood  that  the  shipment  is  going  forward 
"under  deck."  If  a  shipment  is  made  "on  deck"  the  insurance  certificate  must  so 
specify.  In  the  case  of  shipments  "on  deck"  the  insurance  is  only  against  total 
loss  due  to  "perils  of  the  sea"  and  the  insurance  is  not  subject  to  claims  for  in- 
jury or  damage  due  to  the  elements.  Such  shipments  may,  however,  be  made  to 
include  loss  due  to  "jettison  or  washing  overboard." 

Bankers  require  certificate  or  policies  of  insurance  issued  by  responsible  insur- 
ance companies,  and  "brokers  certificates"  are  not  usually  accepted. 

As  the  papers  covering  shipments  are  usually  negotiable,  especially  the  insur- 
ance certificates,  it  is  indispensable  that  the  ownership,  in  case  of  loss  of  the  ship- 
ment, be  vested  in  the  holder  of  the  documents.  For  this  reason  the  endorsement 
on  certificates  should  be  made  in  blank.  This  procedure  simplifies  matters  in  the 
event  of  a  claim. 

There  are  various  policies  under  which  marine  insurance  is  written.  In  some 
cases  foreign  buyers  instruct  the  shipper  to  insure  under  their  open  policy,  in 
which  event  a  notification  is  sent  to  the  agents  of  the  company,  who  issue  a  certi- 
ficate or  acknowledgment.  Under  other  circumstances  shipments  may  be  insured 
under  separate  policies  issued  to  the  shipper  on  each  shipment. 

The  most  convenient  and  simple  method  of  providing  insurance  is  under  an 
"open  policy"  issued  to  the  shipper.  Details  relating  to  each  shipment  are  furnished 
to  the  company  who  issued  the  policy,  and  a  certificate  is  prepared.  Sometimes 
the  shipper  is  authorized  to  prepare  and  issue  certificates  on  behalf  of  the  company 
with  whom  the  "open  policy"  was  placed. 

[47] 


Insurance  is  sometimes  placed  by  freight  forwarders;  otherwise  the  shipper 
secures  it  directly  from  insurance  companies  or  through  insurance  brokers  or 
agents.  The  Guaranty  Trust  Company  of  New  York  maintains  a  special  advisory 
department  to  assist  its  customers  and  others  to  secure  satisfactory  insurance 
protection  at  the  most  favorable  rates;  select  reliable  brokers  and  companies;  adjust 
and  collect  losses  promptly,  and  aid  or  advise  in  all  matters  pertaining  to  insurance 
or  shipping. 

Many  losses  are  incurred  through  "general  average."  Therein  lies  the  entire 
theory  of  marine  insurance.  "General  Average"  is  based  on  the  principle  that, 
if  a  voluntary  sacrifice  is  made  of  a  vessel,  its  equipment,  the  cargo,  or  other  prop- 
erty, for  the  common  welfare  and  safety  or  benefit  of  all  concerned  in  the  ship 
and  its  cargo,  the  entire  loss  should  not  be  borne  wholly  by  the  owners  of  the 
sacrificed  property,  but  should  be  borne  by  all  interests  benefiting  by  the  sacrifice, 
and  each  should  contribute  proportionally. 

When  a  voluntary  sacrifice  has  been  made,  the  owners  of  the  vessel  appoint 
average  adjusters,  who  draw  up  what  is  called  a  general  average  statement.  This 
lists  the  disbursements  made  and  the  sacrifices  incurred  and  distributes  over  the 
various  interests  involved,  viz.,  freight,  cargo,  and  ship,  the  contribution  due  from 
each  interest.  Payment  of  the  estimated  contribution  is  demanded  by  the  steam- 
ship agents  before  the  cargo  is  delivered  to  consignees.  Such  payment  is  usually 
made  by  the  consignee,  who  is  later  reimbursed  by  the  insurer  or  is  guaranteed 
to  the  steamship  agents  by  the  insurers. 

"Particular  Average"  is  loss  or  damage  sustained  by  an  individual  shipment 
through  ordinary  sea  perils  which  falls  wholly  on  the  owners  of  the  property  dam- 
aged or  its  insurers.  Such  losses  occur  through  unavoidable  accident  and  not 
through  destruction  in  order  to  save  other  property. 

Claims  for  losses  may  be  made  in  several  ways.  One  method  is  to  forward  the 
necessary  documents  to  the  shipper.  Another  is  for  the  holder  of  the  documents 
to  file  claims  with  the  nearest  agent  of  the  insurer.  The  most  satisfactory  method 
is  to  request  a  well  equipped  bank  or  banker  to  undertake  collection  of  the  claims. 
The  papers  usually  required  by  insurers  or  underwriters  are  the  following:  (a)  The 
insurance  certificates  which  must  be  properly  endorsed,  (b)  the  original  and  all 
negotiable  copies  of  the  bill  of  lading,  (c)  the  survey  report  made  by  the  local 
representative  of  Lloyds  of  London,  at  the  port  of  arrival,  (d)  the  original  invoice 
or  a  certified  copy  thereof,  (e)  wherever  possible  a  copy  of  the  Master's  Protest, 
and  (f)  in  case  of  total  loss  a  certificate  of  lading  from  the  steamship  company. 
The  Guaranty  Trust  Company  of  New  York  is  especially  equipped  to  undertake 
collection  of  claims. 


Consular  Invoice 


New  York, 
JFsruUTd  de  mercancias  emharcadas  por 


19^ 


a  bordo  de 

(Name  of  Vessel) 

por  cuenta  y  riesgo  de 


(Consignor) 


con  destino  a. 


(Port) 


(or  who's  account  and  risk  shipment  is  made) 


y  a  la  consignacion 

^^ 

(Consignee) 

MARCAS 

(marks) 
NUMEROS 

(nttmbebb) 

NUMERO 

DE  BULTOS 

(number  of 

packages) 

DESCRIPCION 

(description) 

(detailed  contents  component 

materials) 

Peso  Bruto 

Gross  Wgt. 

KILOS 

Peso  Neto 

Net  Wgt. 

KILOS 

PRECIO 

PRICE, 

VALOR 

VALUE 

• 

, 

Declaro  que  soy  el de  las  mercancias  relacionadas  en  la  presente  f actura 

y  que  son  ciertos  los  precios  y  demas  particular^  que  en  ella  se  consignan,  *y  que  1^  mercancias  contenidaa 
en  dicha  factura  son  productos  del  suelo  6  de  la  industria  de  los  Estados  Unidos  de  America. 

•If  merchandise  shipped  is  from  any  country,  other  than  the  United  States,  remainder  of  above  declaration 
should  be  cancelled. 

Declaro  que  soy  el  Agente  autorizado  por  Don que  ha  suscrito 

la  anterior  declaraci6n,  para  presentar  esta  factura  en  la  Oficina  Consular  de  Cuba  en  esta  plasa,  d  fin  de  que  sea 
certificada. 


[48] 


The  careful  preparation  of  a  consular  invoice  is  most  essential.  Duties 
are  often  levied  on  the  weight  of  an  article  and  not  on  its  value,  and  an  in- 
correct description  may  cause  the  foreign  buyer  to  pay  greatly  increased 
import  duties.  Therefore,  to  avoid  trouble  and  the  possible  rejection  of 
merchandise,  particular  care  should  be  given  to  the  preparation  of  this 
document. 

Some  countries  also  have  special  regulations  with  regard  to  bills  of  lading, 
and  in  many  instances  "order"  bills  of  lading  are  not  allowed.  Information 
with  regard  to  these  matters  can  generally  be  obtained  at  the  consulates  of 
the  various  countries. 

[49] 


k 


.il3l 


4 


\i 


TRUST  RECEIPT 


i 


i- 


Trust  Receipts 

Trust  Recei[)ts  are  sometimes  accepted  as  temporary  col- 
lateral from  responsible  customers,  in  exchange  for  shipping 
documents  or  warehouse  receipts. 

They  are  used  to  permit  the  American  exporter  to  ex- 
change his  inland  documents  or  warehouse  receipts  for  ocean 
documents,  or  vice  versa,  to  permit  the  importer  to  exchange 
his  ocean  documents  for  warehouse  receipts  or  railroad 
documents. 

They  are  also  used  when  a  merchant  withdraws  collateral 
which  has  been  pledged  as  security  for  a  loan,  for  the  purpose 
of  sale  or  shipment. 

The  substance  of  these  receipts  is  simply  that  the  mer- 
chandise remains  the  property  of  the  bank,  and  is  released  to 
the  customer  on  his  promise  that  he  will  deliver  to  the  bank 
within  a  given  time,  other  documents  representing  the  same 
merchandise  or  the  equivalent  in  cash.  Another  important 
stipulation  is  that  the  merchandise  will  at  all  times  be  covered 
by  insurance. 


[50] 


J^ttVVHtu  from  The  Guaranty  Trust  Co.  of  New  York  the  following  goods  and  mer- 
chandise, their  property,  specified  in  the  Bill  of  Lading  per  S.S 

Dated —marked  and  numbered  as  follows; 

{Space  is  left  here  for  description  of  merchandise) 

and,  in  consideration  thereof,  <  —  ?  hereby  agree  to  hold  said  goods  in  trust  for  them, 

(we) 

and  as  their  property,  with  liberty  to  sell  the  same  for  their  account,  and  further  agree,  in  case 

of  sale,  to  hand  the  proceeds  to  them  to  apply  against  the  acceptances  of  The  Guaranty 

(my  ) 
Trust  Co.  of  New  York  on  ^  —  \  account,  under  the  terms  of  the  Letter  of  Credit 

our ) 


No.. 


mme 


ours 


-issued  for  <  —  >  account  and  for  the  payment  of  any  other  indebtedness  of 
our) 

to  The  Guaranty  Trust  Co.  of  New  York. 


The  Guaranty  Trust  Co.  of  New  York  may  at  any  time  cancel  this  trust  and  take 
possession  of  said  goods,  or  of  the  proceeds  of  such  of  the  same  as  may  then  have  been  sold, 
wherever  the  said  goods  or  proceeds  may  then  be  found  and  in  the  event  of  any  suspension. 


or  failure,  or  assignment  for  the  benefit  of  creditors,  on 


my 


our 


part,  or  of  the  non-fulfillment 


me 


of  any  obligation,  or  of  the  non-payment  at  maturity  of  any  acceptance  made  by  <  —  [  under 

(  us  ) 
said  credit,  or  under  any  other  credit  issued  by  The  Guaranty  Trust  Co.  of  New  York  on 
my )  ^  ( my ) 

—  (  account  or  of  any  indebtedness  on  <  —  ?  part  to  them,  all  obligations,  acceptances, 

'our) 


our 


indebtedness  and  liabilities  whatsoever  shall  thereupon  (with  or  without  notice)  mature 

(  my  ) 
and  become  due  and  payable.    The  said,  goods  while  in  <  —  \  hands  shall  be  fully  insured 

(our) 

against  loss  by  fire. 


Dated,  New  York  City 


-192. 


(Signed). 


Stg. 


Note. — This  form  is  used  when  the  merchandise  is  entrusted 
to  the  merchant  for  purpose  of  sale.  All  payments  whether  partial 
or  complete  should  immediately  be  handed  to  the  bank  regardless 
of  the  fact  that  the  obligations  for  which  the  merchandise  is  col- 
lateral may  not  be  due, 

[51] 


(' 


I  I 


I4i 


1^1 


TRUST  RECEIPT 


New  York  Citv 


192 


Uttmti  from  the  GUARANTY  TRUST  COMPANY  OF  NEW  YORK  the  following 
goods  and  merchandise  specified  in  the  documents  described  below,  and  in  consideration 
thereof  I/we  hereby  agree  to  hold  said  goods  in  trust  for  it  and  as  its  property  and  to  deliver 
over  to  the  said  Trust  Company  or  its  assigns  the  ocean  bills  representing  the  goods  and 
merchandise  described  below,  or  other  negotiable  documents,  or  the  proceeds  of  the  sale  of 
the  goods  and  merchandise  set  forth  in  the  said  documents;  the  delivery  herein  being  tem- 
porarily made  to  me/us  for  convenience  only,  without  novation,  or  without  giving  me/us  any 
title  to  the  documents,  or  the  goods  and  merchandise  they  represent,  except  as  trustee  and 
agent  for  the  said  Trust  Company  and  except  to  eflFect  the  exchange  of  said  documents  for 
ocean  bills  of  lading,  or  to  receive  the  proceeds  thereof  for  the  account  of  said  Trust  Company. 

The  said  Trust  Company  may  at  any  time  cancel  this  trust  and  take  possession  of  said 
goods  and  merchandise  or  of  the  proceeds  of  such  of  the  same  as  may  then  have  been  sold, 
wherever  the  said  goods  and  merchandise  or  proceeds  thereof  may  then  be  found. 

The  said  goods  and  merchandise  while  in  my/our  hands  shall  be  fully  insured  against 
loss  by  fire  and  any  other  risk  that  said  goods  and  merchandise  may  be  subjected  to. 

I/we  hereby  agree  to  deliver  said  ocean  bills  of  lading,  or  to  pay  the  proceeds  arising  from 
the  sale  of  the  said  goods  and  merchandise,  to  the  said  Trust  Company  on  or  before     DcU^ 


Signed, 


Note. — This  form  is  used  in  connection  with  export  credits  and  loans.  It  will  he 
noted  that  the  shipper  obligates  himself  to  the  Guaranty  Trust  Company  of  New  York 
to  hold  the  merchandise  in  trust  for  it  and  as  its  'property,  and  to  deliver  over  to  said 
Company  or  its  assigns,  the  ocean  hills  of  lading  representing  the  goods  and  merchandise 
as  described  in  the  Trust  Receipt  itself. 

It  will  also  be  seen  that  the  party  signing  the  Trust  Receipt  agrees  either  to  deliver 
the  ocean  documents  called  for,  or  to  return  the  documents  given  to  him  in  trust,  or 
their  equivalent  to  the  Trust  Company. 

[52] 


TRUST  RECEIPT 


(FOR  DELIVERY  TO  PURCHASER) 


ViBttxnth  from  The  Guaranty  Trust  Co.  of  New  York  the  following  goods  and 

merchandise,  their  property,  specified  in  the  Bill  of  Lading  per ,  dated 

marked  and  numbered  as  follows: 


(Space  is  left  here  for  description  of  merchandise) 


In  trust  to  deliver  the  same  to. 


who  have  purchased  the  same  for. 


e  in. 


payabl 

and  to  obtain  from  the  purchaser  the  proceeds  of  the  sale  of  the  same. 

me 


In  consideration  of  the  delivery  of  said  goods  to 


in  trust  as  above 


1 


agree  to 


us  )  (we 

deliver  them  immediately  to  the  said  purchasers,  and  to  collect  the  proceeds  of  sale,  and  imme- 
diately deliver  such  proceeds  to  The  Guaranty  Trust  Co.  of  New  York  in  whatever  form  col- 
lected, to  be  applied  by  them  against  the  acceptances  of  The  Guaranty  Trust  Co.  of  New 


-issued  for 


\  my  / 

York  on  }  —  >  account,  under  the  terms  of  Letter  of  Credit  No 

(our) 

—  >  account,  and  to  the  payment  of  any  other  indebtedness  of  J >  to  The  Guaranty 

our  )  (  ours  ) 

Trust  Co.  of  New  York.  It  is  understood,  however,  that  if  such  proceeds  be  in  notes  or  bills 
receivable,  they  shall  notbe  so  applied  until  paid,  butwitli  liberty  meanwhile  to  The  Guaranty 
Trust  Co.  of  New  York  to  sell  or  discount,  and  so  apply  net  proceeds. 

The  Guaranty  Trust  Co.  of  New  York  may  at  any  time  cancel  this  trust,  and  they 
may  take  possession  of  said  goods  until  the  same  have  been  delivered  to  said  purchasers  and 
the  proceeds  of  sale  received  from  them,  and  thereafter  of  such  proceeds,  wherever  the  said 
goods  and  proceeds  may  then  be  found,  and  in  the  event  of  any  susp<ension  or  failure  or 

assignment  for  the  benefit  of  creditors  on  \  —  >  part  or  of  the  non-fulfillment  of  any  obligation 

our) 


or  of  the  non-payment  at  maturity  of  any  acceptance  made  by 


me 


us 


under  said  credit,  or  any 


other  credit  issued  by  The  Guaranty  Trust  Co.  of  New  York  on 


my 


our 


account,  or  of  any 


indebtedness  on  ]  —  >  part  to  them,  all  obligations,  acceptances,  indebtedness,  and  liabilities 
(our) 

whatsoever  shall  thereupon  (with  or  without  notice)  mature  and  become  due  and  payable. 
Dated 192 

Note. — This  form  of  Tru^t  Receipt  is  used  covering  the  delivery  of 
merchandise  actually  sold,  and  is  also  used  in  connection  with  Import 
Letters  of  Credit,  the  relative  shipping  documents  being  surrendered  to  the 
client  against  his  tru^t  receipt  in  order  to  enable  him  to  make  delivery  to 
the  buyer. 

[53] 


TRUST  RECEIPT 


BAILEE   RECEIPT 


(DOCUMENTS  FOR  WAREHOUSING) 


l^HiXnth  from  The  Guahantt  Trust  Co.  of  New  York  Bill  of  Lading  per 

"**^^ for  the  following  goods  and  merchandise, 

their  property,  marked  and  numbered  as  follows: 


imported  under  the  terms  of  Letter  of  Credit  No.. 


.,  issued  by  them  for 


me 


my>  ,  i"*^f 

—  >  account  the  said  Bill  of  Lading  to  be  used  by  ]  —  >  for  the  sole  purpose  of  entering  the 

our )  (  us  ) 

above  described  property  at  the  United  States  Custom  House  at  the  Port  of 

and  of  storing  the  same  in  the  name,  and  as  the  property,  of  the 

said  The  Guaranty  Trust  Co.  of  New  York,  and  subject  only  to  their  order,  <  — 

( we 

hereby  agreeing  to  so  store  the  said  property  and  to  hand  the  storage  receipt  for  the  same  to 

the  said  The  Guaranty  Trust  Co.  of  New  York,  when  obtained. 
I  ) 
—  >  ALSO  AGREE  to  fully  insure  said  property  against  fire,  the  loss,  if  any,  payable 

to  said  The  Guaranty  Trust  Co.  of  New  York,  and  to  hand  to  them  the  policies  of  insur- 
ance thereon. 

Dated^ ; 192  k 


(Signed). 


£. 


Note. — This  form  of  Trust  Receipt  is  also  used  in  connec- 
tion vdth  Import  Letters  of  Credit^  and  it  is  temporarily  accepted 
against  the  surrender  of  shipping  documents,  in  order  thai  the 
goods  covered  by  such  documents  may  be  placed  in  warehouse, 
and  pending  the  delivery  of  the  warehouse  receipt. 


[54] 


ISitttXXiti  from  the  Guaranty  Trust  Company  of  New  York 

solely  for  the  purpose  of  selling  same  for  account  of  said  Company: 


marked  and  numbered. 


and. 


-hereby  undertake  to  sell  the  property  herein  specified,  for  account  of  the  said 


Company y  and  collect  the  proceeds  of  the  sale  or  sales  thereof,  and  deliver  the  same  immediately  on 
receipt  thereof  to  the  said  Company,  to  he  applied  to  the  credit  of . 


hereby  acknowledging. 
Company,  and 


.to  be  Bailee  of  the  said  property  for  the  said 
do  hereby  assign  and  transfer  to  the  said 


Company  the  accounts  of  the  purchaser  or  purchasers  of  said  property  to  the  extent  of  the  purchase 

price  thereof,  of  which  fact  notice  shall  be  given  at  the  time  of  delivery  of  the  said  property  by 

to  such  purchaser  or  purchasers  and  all  invoices  therefor  shall  have  imprinted,  written  or  stamped 
hereon  by the  following: 


"Transferred  and  payable  to  GUARANTY  TRUST  COMPANY  OF  NEW  YORK, 

llfi  Broadway,  New  York.'* 

If  the  said  property  is  not  sold  and  the  proceeds  so  deposited  within  ten  days  from  this  date, 
■ undertake  to  return  all  documents  at  once  on  demand,  or  to  pay  the  value  of 

the  goods,  at  the  Company* s  option. 

\  mv  # 
The  said  goods  while  in  )  —  >  hands  shall  be  fully  insured  against  loss  by  fire. 

(  our) 
The  terms  of  this  receipt  and  agreement  shall  continue  and  apply  to  the  merchandise  above 

referred  to  whether  or  not  control  of  the  same,  or  any  part  thereof,  be  at  any  time  restored  to  the 

Guaranty  Trust  Company  of  New  York,  and  subsequently  delivered  to  us. 

Dated  at  New  York  City, 192 


Note. — This  form  of  receipt  is  very  specific  as  to  the  terms  and 
conditions  under  which  possession  of  merchandise  is  obtained. 


[55] 


i 


I 


- 1 


Bankers  Foreign  Drawings 

The  Guaranty  Trust  Company  of  New  York  grants  facilities  to  its  correspondent 
banks  in  the  United  States  and  abroad,  which  enable  them  to  draw,  under  its 
protection,  on  its  foreign  correspondents  in  all  parts  of  the  world. 

To  those  desiring  to  utilize  this  service  the  Guaranty  Trust  Company  is  pre- 
pared to  furnish  a  Book  of  Correspondents  covering  practically  the  whole  of  the 
commercial  world.  This  volume  contains  instructions  relative  to  the  methods 
to  be  followed  in  drawing  these  drafts  and  also  indicates  how  the  varying  require- 
ments of  banks  in  the  diflFerent  nations  may  be  met. 

Correspondent  banks  may  use  their  own  draft  forms,  but  to  those  not  possessing 
specially  engraved  checks  suitable  for  this  purpose,  the  Guaranty  Trust  Company 
furnishes  appropriate  forms,  free  of  charge,  upon  which  is  imprinted  the  name  of 
the  issuing  bank.  The  name  of  the  Guaranty  Trust  Company  does  not  appear 
thereon. 

Rate  lists  are  furnished  daily  to  those  using  these  facilities,  together  with  our 
buying  rate  for  the  principal  foreign  currencies,  either  gold,  silver,  or  notes. 

Post  Remittances 

Drafts  are  not  always  suitable  for  effecting  the  payments  required  by  immi- 
grants, particularly  in  connection  with  family  payments  to  Italy,  Austria,  the 
Balkans,  Scandinavian  countries,  and  Asia  Minor,  where  the  beneficiaries  fre- 
quently are  living  in  villages  and  small  towns,  and  where  there  is  often  an  entire 
absence  of  banking  facilities. 

To  meet  these  requirements  we  have  inaugurated  a  Post  Remittance  Service, 
by  means  of  which  payment  in  the  currency  of  the  country  is  effected  through  our 
correspondents,  directly  at  the  address  of  the  payee.  For  this  purpose  special 
forms  are  furnished,  supplementary  to  the  ordinary  draft  books. 


h 


Travelers  Checks 

"Dollar"  Guaranty  Travelers  Checks  are  issued  by  this 
company  in  denominations  of  $10,  $20,  $50,  and  $100.  These 
checks  will  be  cashed  in  all  parts  of  the  world,  at  the  buying 
rate  for  demand  drafts  on  New  York,  on  the  day  of  pres- 
entation. 

The  advantage  of  our  "Dollar"  Guaranty  Travelers 
Checks  over  checks  cashable  at  a  fixed  rate  of  exchange  lies 
in  the  fact  that  the  holder  receives  payment  at  the  rate  of 
exchange  prevailing  on  the  day  of  encashment,  which  can  be 
accepted  or  declined. 

The  form  of  Guaranty  Travelers  Checks  is  illustrated  on 
the  following  page. 


I! 


[56] 


[57] 


h 


•i — :  .—-♦ 


^  V  .y  '»'  V 


TRAVELERS  CHECK 


M«weCR'S    •••NATUMC 


Guaranty  Trust  Com 


0»»  »T»  WAY 


WtU  MY  TO  THE  OROCR  OF 


«9IN  UNITCOSTAT 


TWENTY  DO 


N9  000000 


mn< 


Newlbrk 


r^  <  IN  OTHER  COUNTRIES -v«i 

AT  BANKERS  BUYING  RATE  OF  EXCHANOE 
FOR  CHECKS  ON  NEWVORK-  -  — 


^CRSON  WHOSK  »t&MATUMK  Am^CAX*  AaOVS 


Guaranty  Trust  Company  of  NewYOTk 


il 


T)*%  mOvcsn  mv«t  •»•«•  H«<»c  IN  M»csftMC«  o*  MVr>M«  «r*iccn 


^    *-7>.v- 


*-^r;x-;-*^'^^A: 


.\m>kka>  ii^vh  >»*r»  I 


Form  of  Guaranty  Travelers  Check 


Traveler's  Letters  of  Credit 

The  Guaranty  Trust  Company  of  New  York  issues  Travel- 
er's Letters  of  Credit  in 

DOLLARS  POUNDS  STERLING  FRANCS 

These  Letters  of  Credit  are  a  convenient  and  desirable  method 
of  providing  for  the  financial  requirements  of  travelers.  Funds 
can  be  obtained  against  these  Letters  of  Credit  from  our 
correspondents  in  all  parts  of  the  world,  a  complete  list 
of  whom  is  furnished  at  the  time  of  issuing  the  Letter  of 
Credit. 

In  the  case  of  "Dollar"  Letters  of  Credit  reimbursement  is 
obtained  through  demand  drafts  on  our  oflSce  in  New  York; 
"Sterling"  Letters  of  Credit  by  demand  drafts  on  our  Lon- 
don office,  and  "Franc"  Letters  of  Credit  by  drafts  on  our 
Paris  office. 

In  the  following  pages  are  reprinted  facsimiles  of  Letters 
of  Credit  in  their  various  forms.  • 


[58] 


[59] 


INTENTIONAL  SECOND  EXPOSURE 


I 


Form  of  Guaranty  Travelers  Check 


Traveler's  Letters  of  Credit 

The  Guaranty  Trust  Company  of  New  York  issues  Travel- 
er's Letters  of  Credit  in 

DOLLARS  POUNDS  STERLING  FRANCS 

These  Letters  of  Credit  are  a  convenient  and  desirable  method 
of  providing  for  the  financial  requirements  of  travelers.  Funds 
can  be  obtained  against  these  Letters  of  Credit  from  our 
correspondents  in  all  parts  of  the  world,  a  complete  list 
of  whom  is  furnished  at  the  time  of  issuing  the  Letter  of 
Credit. 

In  the  case  of  "Dollar"  Letters  of  Credit  reimbursement  is 
obtained  through  demand  drafts  on  our  oflfice  in  New  York; 
"Sterling"  Letters  of  Credit  by  demand  drafts  on  our  Lon- 
don oflSce,  and  "Franc"  Letters  of  Credit  by  drafts  on  our 
Paris  office. 

In  the  following  pages  are  reprinted  facsimiles  of  Letters 
of  Credit  in  their  various  forms. 


I 


i 


[58] 


[59] 


In 


m 


Guaranty  Tmstuomjia^ 

Clrcalar  Letter  of  Credit 

^0000  /<i<^^/-/^V 


•  pi! 


Et3< 


^1 


MM:.- 


j/r4Mff^^/m///r^y///^/^jM'^^  &n/^Li^£C^n^. 


f//  // /ff.jr ///ifr    \i 


j}^ [  i    J/mfA'i  //!/  ^///-/mm  fi/M/M//f .u//m//j /( ///^/^M^/^^m ///////// 


Guaraiily  Trust  Comp^^W 


n 


1^1- Vi.'. 


S^""":jiiiiiliiiiiii 


SPKCIFICATION 
^s  OF   Al,!,   PAYMENTS    MADE    UNDER   THIS    LEXTER   OK   QR^DIT. 


M. 


f^iu   tJV  ,  AMOUNTS 


Ifgai'  -WHSK  PA.ID 


;>fc^:f 


A 


i 


liS]; 


I,-, 


*  r 

■■■M 

in 


in 


'r- 


»[ 


^. 


:h---^""- 


'"'•I'^'Tn  / 


IN  ViroKi>B 


#ri  M^,Q<^tw^j^H£/ 


5iik'i)iiiii] 


•<1? — ^, 


Vq 


ooi 


■rH" 


iiiii 


^. 


,• 

i 

-: 

arried forward 

'  ' 

1.    - 

\ 

■  '-rr-^M 

*i 


I! 


if 


\ 


ft 


I 


Traveler's  Dollar  Letter  of  Credit 

Reimbursement  through  Dollar  Drafts  on  New  York 

[  B^RONT  ] 


[60] 


Traveler's  Dollar  Letter  of  Credit 

Any  amounts  paid  against  this  credit  are  endorsed  on  the 
Letter  of  Credit  by  the  paying  bank 

[  BACK  ] 


"^ 


[61] 


I 


INTENTIONAL  SECOND  EXPOSURE 


i 


'fe^.' 


|isj| 


^1' 


liiiPiiiiiiiiiiSiiiiiiiliilil! 


Guaranty  Trust  Company  of  Newtbrk 


Circulnr  Letter  of  Credit 


s,    y/r 


0000 


.J  7 


IP' 


frr  A^ff  V^/w?'///  fY/M//'  .^y/l^te-C^  Mmi^jR}!!^.:^    ^    ,..    ^^     _  H 


Guaranty  Trust  Comjmiiydfjrevr 


'/anmAr  /mf/mrfey^Of/r     ! 


r;.^ 


sill 


.  >yj^y//A^//'/'v^ 


■Ifi 


'#ui^L 


i-.,; 


c,?tC\^ 


P^ 


vy^y^vmrjtm' 


'jmfj^f'' 


.^<  /Uj/z/^/ik/  ^,:^r^r'/rf:ij4f///^'?///  i^  i 


teBPSiliiiiililiF":'"'^     -liiiis 


a. 


fi^^p' 


iiiiiiiiiiiiiiiiiiiiiiiiiiiiiir^^ 


•,i 


r't3 


SFBCIKICATION 

OF   ALL   PAYMBNTS    MADE   UNDER   THIS    LETTER   OF   CREDIT. 

(Please  er«Sar«e  all  paymems  In  Ooll^ra,  U.  S,  currency  m  wl.lcU  this*  credit  is  isfeueO-J 


DATE 


#^^ 


jif.  X»^t.JL^J 


.if;; 


;[!^-^u 


,'*: 


^ 


-  ! 
.   t 


Amouni  carried  forward 


L 


ci  -,|*4C^QI.^k^i>  '-'^l^ii'ji'i'li'A'!^''  H-^4ru'i^_4t.<ft 


;r?f->ij' 


Ho. 


CO 


Traveler's  Dollar  Letter  of  Credit 

Reinihursenient  through  Dollar  Drafts  on  New  York 

[ FRONT ] 


Traveler's  Dollar  Letter  of  Credit 

Any  amounts  paid  against  this  credit  are  endorsed  on  the 
Letter  of  Credit  by  the  paying  hank 

[  BACK ] 


[60] 


[61] 


f 


i 


■iiiiiiiiieiiiiiiiiliiililiiiiMiiiliiiiiiiiiiliiliiil 


(iti£l 


^iarayw 


[tea 


[^ 


l 


^] 


i^ 


/ 


it 


:tfc:3  !•      ■ 

IP  ' 


pica 


wmoo 


Gircrdar  Letter  of  €re«Iit 


•^/^rr<^'^^:r%^^^ 


[^ 


(^ 


^] 


/■■; 


gf  .     €<T.dfrf¥\  j^^¥¥f^M/.r-if¥^i^i^:<jr^ .  J&/^ .  r^t^^Vs^:?'?^^ 


-r— 5 — r":'a.i  ? 


■  ifc£3  > 


r 


^j 


[^ 


^ir. 


^ 


Gnanmty  Trust 


^n^Hjmi^ 


•/<J^-. 


wmmef^M//T  fffm 


//// 


1^ 


^] 


1^ 


IM! 


PeS! 


don. 


[^ 


[^ 


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[^ 


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[^ 


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[^ 


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[^ 


[^ 


[^ 


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^ 


^ 
[^ 


[^ 


^1 


{S?li 


Traveler's  Sterling  Letter  of  Credit 

Reimbursement  through  Sterhng  Draft  on  our  London  Office 

[ FRONT ] 


[62] 


_  SPBCij^iCAXipN': 


m^        0¥-:  AJA^  ;^j>iiYi>mi^n;:^.  ^^^^ 


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Traveler's  Sterling  Letter  of  Credit 

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[64] 


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DE  TOUS  LES  PAIEIVIENTS  EFFECTUtS  EN  VERTU  DE  CETTE  LE'ITRE  DE  CREDIT. 

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[65] 


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[64] 


DJ&TAILS 

DE  TOrS  LES  PAIEMENTS  EFFECTUfiS  EN  VERTU  DE  CETTE  LEHKE  DE  CREDIT. 

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[  BACK ] 


[65] 


American 
Banks  in 
Europe 


(Above)  Pall  Mali,  London  Office 
(Below)  Paris  Office 


I 


THROUGH  our  nine  branches  in  Europe 
and  more  than  two  thousand  corre- 
spondent banks  in  every  trade  center  of 
the  world,  we  are  prepared  to  render  com- 
plete international  banking  service  that  is 
accurate,  prompt  and  safe. 

We  have  three  branches  in  Ix)ndon,  and 
one  each  in  Paris,  Brussels,  Liverpool, 
Antwerp,  Havre  and  Constantinople.  All 
of  these  branches,  being  familiar  with 
European  conditions  and  business  pro- 
cedure, and  conducted  along  American 
lines,  are  in  an  especially  favorable  posi- 
tion to  serve  American  business  houses 
and  travelers. 

Business  relations  can  be  established 
with  these  branches  direct  or  through 
any  of  our  New  York  offices.  The  range 

of  their  service  is  exceptionally  broad.       It  embraces  every  banking  function; 

the  furnishing    of  trade    and   travel    information;    assistance  in  establishing 

connections;  the  collection  of  income  and  the  care  of  securities  abroad;  and 

other  services. 

We  cordially  invite  you  to  avail  yourself  of  our  facilities. 

[66] 


International  Trade  Service 

The  Guaranty  Trust  Company  of  New  York  maintains  a  highly  developed 
International  Trade  Service  for  the  purpose  of  closely  following  political,  financial, 
and  commercial  conditions  throughout  the  world. 

This  service  also  acts  as  a  medium  to  bring  the  American  seller  in  touch  with 
foreign  buyers,  and  the  American  buyer  with  foreign  sellers.  Its  files  contain 
names  of  foreign  and  domestic  business  houses,  classified  according  to  their  inter- 
national trade  interests  which  are  available  to  customers  upon  inquiry. 

The  personnel  of  this  Service  is  composed  of  men  of  long  experience  in  research 
work  and  foreign  trade  promotion. 

Information  is  gathered  from  all  available  sources:  Our  branch  offices  and  for- 
eign representatives,  our  correspondents,  government  bulletins,  and  the  foreign  and 
domestic  press,  and  our  files  include  also  extensive  information  on  foreign  tariffs, 
customs  regulations,  trade  and  banking  practices,  methods  of  extending  credit 
in  all  countries,  commercial  laws  and  transportation. 

A  monthly  summary  of  foreign  and  domestic  trade  and  financial  conditions  is 
published  in  a  bulletin,  "The  Guaranty  Survey."  Many  special  reports  are 
prepared  for  clients,  and  information  is  freely  given  to  those  interested  in  the 
development  of  international  trade. 

Foreign  Credit  Department 

The  foreign  Division  of  the  Credit  Department  is  prepared  to  advise  importers, 
exporters,  merchants,  and  bankers  regarding  moral  and  financial  responsibility 
of  their  clients  or  prospective  customers  abroad. 

Through  constant  inquiry  and  file  revision,  this  information  is  recent  and 
reliable. 

This  world-wide  service  is  rendered  without  charge  through  the  well-established 
facilities  of  our  various  branch  offices,  affiliated  institutions,  and  correspondents. 
The  services  of  our  special  foreign  representatives  are  also  available  in  this  con- 
nection. 

Special  investigations  of  particular  firms  are  made  upon  request. 


II 


I    r   I 

f 


IP 


I 


[67] 


|: 


Business  With  Our  Branches  and  Affiliations 

The  Branches  Department  of  the  Foreign  Department  attend  to  the  business 
of  customers  with  our  London,  Liverpool,  Paris,  Le  Havre,  Brussels  and  Con- 
stantinople branches,  and  with  our  affiliations,  the  Mercantile  Bank  of  the  Americas, 
for  Central  and  South  America  and  Cuba,  and  the  Asia  Banking  Corporation  for  the 
Far  East. 

All  transactions  with  these  branches  and  affiliations,  such  as  proposals  of  new 
business,  opening  of  check  and  time  deposit  accounts,  transferring  of  money,  and 
forwarding  of  securities  to  our  Branches  for  safe  keeping,  receive  special  attention 
in  this  department. 

Customers  who  contemplate  doing  business  with  foreign  banks  are  invited  to 
consult  with  the  officers  of  this  department,  as  they  are  thoroughly  familiar  with 
the  practices  and  customs  of  foreign  banking. 


Direct  Foreign  Banking  Facilities 

Great  Britain  and  Continental  Europe 

The  London,  Paris  and  Brussels  offices  of  the  Guaranty  Trust  Company  of  New 
York  are  officially  designated  United  States  depositaries.  They  are  American  in- 
stitutions, conducted  on  American  lines,  and  are  especially  well  equipped  to  render 
banking  service  throughout  Eiu*ope.  Additional  branches  have  been  established  in 
Liveri)ool,  Le  Havre,  Antwerp,  and  Constantinople. 

We  have  our  own  special  representatives  in  Australia  and  in  the  Scandinavian 
countries. 

The  Mercantile  Bank  of  the  Americas,  with  which  we  are  affiliated,  maintains 
offices  in  Barcelona  and  Madrid,  which  are  depositaries  for  the  United  States 
Government.  Through  this  connection  we  ofiFer  direct  service  with  Spain  and 
Portugal.   This  institution  also  maintains  Branches  in  Paris  and  Hamburg. 


South  and  Central  America,  Cuba  and  the  West  Indies 

The  Guaranty  Trust  Company  of  New  York  has  direct  connections  with  the 
leading  financial  institutions  in  Argentina,  Uruguay,  Chile  and  Brazil.  We  cover 
other  coimtries  of  South  and  Central  America,  and  the  West  Indies,  through  the 
Mercantile  Bank  of  the  Americas,  which  has  branches  and  connections  as  follows: 

Argentina     Banco  Mercantil  y  Agricola  de  Bueuos  Aires:  Buenos  Aires. 


Brazil 
Colombia 


American  Mercantile  Bank  of  Brazil:  Para,  Pernambuco. 

Banco  Mercantil  Americano  de  Colombia:  Bogota,  Barranquilla,  Cartagena, 
Medellin,  Manizales,  Girardot,  Cali,  Honda,  Armenia,  Bucaramanga,  Ciicuta. 

[68] 


CosTA  Rica 
Cuba 

Honduras 

Nicaragua 

Peru 

Venezuela 


Banco  Mercantil  de  Costa  Rica:  San  Jos6. 

Banco  Mercantil  Americano  de  Cuba:  Havana,  Ciego  de  Avila. 

Agencies  in  Ecuador,  El  Salvador,  Guatemala. 

Banco  AUautida:  La  Ceiba,  Tegucigalpa,  San  Pedro  Sula,  Puerto  Cortez,  Tela. 

National  Bank  of  Nicaragua:    Mangua,  Bluefields,  Leon,  Granada. 

Banco  Mercantil  Americano  del  Peru:  Lima,  Arequipa,  Chiclavo,  Callao, 
Irujillo,  Pmra. 

Banco  Mercantil  Americano  de  Caracas:  Caracas,  La  Guayra,  Puerto  Cabello 
Maracaibo,  Valencia.  ' 


South  Africa,  Australia  and  New  Zealand 

The  direct  connections  of  the  Guaranty  Trust  Company  of  New  York  with  the 
National  Bank  of  South  Africa,  at  Cape  Town,  and  its  many  branches  in  the 
Transvaal,  Rhodesia,  Natal,  Mozambique,  etc.,  assure  customers  of  efficient  bank- 
mg  service  throughout  the  Union  of  South  Africa. 

We  have  a  special  representative  in  Australia,  and  our  direct  banking  connec- 
tions  offer  a  comprehensive  service  for  trade  in  Australia  and  New  Zealand. 

The  Mediterranean 
Owing  to  the  increasing  trade  between  the  Levant  and  the  United  States,  the 
Guaranty  Trust  Company  of  New  York  has  opened  a  branch  at  Constantinople, 
to  support  American  interests. 

We  also  have  co-operative  arrangements  with  the  great  English  and  French 
institutions  established  in  these  territories,  which  permit  us  to  offer  a  complete 
banking  service  throughout  the  Levant. 

China,  Japan,  British  India,  Dutch  East  Indies,  Straits  Settlements, 

and  the  Far  East 
Through  its  affiliations  with  the  Asia  Banking  Corporation,  The  Guaranty 
Trust  Company  of  New  York  negotiates  direct  banking  transactions  of  every 
nature  m  China,  Manchuria,  Southeastern  Siberia,  and  throughout  the  Far  Ea^t 
Ihe  Asia  Bankmg  Corporation  has  its  main  office  at  No.  35  Broadway,  New  York 
City,  and  has  offices  in  Shanghai,  Peking,  Tientsin,  Hankow,  Canton,Hong  Kong, 
Changsha,  Singapore,  and  Manila,  P.  I. 

The  Guaranty  Trust  Company  of  New  York  is  also  official  correspondent  for 
leading  Japanese  banks. 

We  are  representatives  in  the  United  States  of  the  Tata  Industrial  Bank  of 
india,  and  render  direct  banking  and  merchant  service  throughout  British  India. 
The  Tata  Industrial  Bank  was  organized  by  English  and  native  bankers  to  promote 
investment  m  industrial  enterprises,  many  of  which  have  been  established  since  the 
war  began.  It  is  the  first  institution  of  the  kind  ever  established  in  India  and  at 
present  has  oflSces  at  Bombay,  Calcutta,  and  Hyderabad.  Others  are  soon  to  be 
established. 

In  addition  to  the  above  the  Guaranty  Trust  Company  of  New  York  has  a 
resident  representative  in  India.  We  are  also  correspondents  of  the  leading  Dutch 
banks  established  in  the  Dutch  East  Indies  and  the  Straits  Settlements. 

[69] 


i> 


Currencies  of  Various  Countries  in  the  World  and  their 
Nominal  Equivalent  at  Par  in  United  States  Dollars 

{All  these  rates  are  subject  to  exchange  fluctuations) 


COUNTRY 


CURRENT    COIN 


NOMINAL 
EQUIVALENT 
AT  PAR 
IN  U.  8.  DOLLARS 


NORTH  AMERICA 

Canada 

Gold  Dollar 

$1. 

Mexico 

Peso 

0.50 

Newfoundland 

Gold  Dollar 

1.014 

St.  Pierre  &  Miquelon 

Same  as  France 

0.193 

* 

CENTRAL  AMERICA 

British  Honduras 

Gold  Dollar 

$1. 

Costa  Rica 

Colon 

0.465 

Nicaragua 

Gold  Cordoba 

1. 

Guatemala 

Paper  Peso  fluctuates  in  value 

Honduras  (Spanish) 

Same  as  U.  S. 

1. 

Panama 

Gold  Balboa 

1. 

Silver  Peso 

0.50 

Salvador 

Silver  Peso 

0.40 

British  West  Indies 

Same  as  United  Kingdom 

4.8665 

Cuba 

Same  as  United  States 

1. 

Danish  West  Indies 

Franc 

0.193 

Gold  Dollar 

1. 

Dominican  Republic 

Same  as  United  States 

1. 

Dutch  West  Indies 

Same  as  The  Netherlands 

0 .  40^2 

French  West  Indies 

Same  as  France 

0.193 

Haiti 

Gold  Gourde  also 
United  States  Currency 

0.186 

Porto  Rico 

Same  as  in  the  United  States 

1. 

Argentina 


SOUTH  AMERICA 

Gold  Peso  $0 .  965 

Paper  Peso  0 .  4246 

Bolivia  Boliviano  0.389 

*Non — In  many  countriea  gold  coins  do  not  actually  exist,  but  are  only  theoretical  units  of  exchange 

[70] 


Currencies  of  Various  Countries  in  the  World 


{All  these  rates  are  subject  to  exchange  fluctuations) 

NOMINAL 

] 

EQUIVALENT 

AT  PAR 

COUNTRY 

CURRENT    COIN                            IN 

SOUTH  AMERICA    Continued 

U.  S.  DOTJARS 

Brazil 

Gold  Milreis 

Paper  Milreis,  fluctuates  in  value 

$0,546 

British  Guiana 

•    Gold  Dollar 

1.00 

Chile 

Gold  Peso 

Paper  Peso  fluctuates  in  value 

0.365 

Colombia 

Gold  Dollar 

0.973 

Dutch  Guaina 

Same  as  The  Netherlands 

0.402 

Ecuador 

Sucre 

0.487 

French  Guiana 

Same  as  France 

0 .  193 

Paraguay 

Paper  Peso  (fluctuates  in  value) 

Peru 

Libra  Peruana  (Gold) 
Soles  (Silver) 

4.8665 

Uruguay 

Peso 

1.034 

Venezuela 

Bolivar 
EUROPE 

0.193 

Austria 
Belgium 

Crown 
Franc 

0.193 

Bulgaria 

Lev 

0.193 

Czechoslovakia 
Denmark 

Kronen 
Kronor 

0.268 

Finland 
France 

Finnish  Mark 
Franc 

0.193 

Germany 

Mark 

0.238 

Greece 

Gold  Drachma 

0.193 

Hungary 

Kronen 

0.00 

Iceland 

Same  as  Denmark 

0.268 

Italy 

Lira 

0.193 

Jugo-Slavia 

Dinars  and  Kronen 

(1  Dinar  equals  4  Kronen) 

0.00 

Luxembourg 

Francs 

0  193 

171] 


Currencies  of  Various  Countries  in  the  World 


Currencies  of  Various  Countries  in  the  World 


f 


{All  these  rates 

are  subject  to  exchange  fltuiuaiicms) 

{All  these  rates 

are  subject  to  exchange  fluctuations) 

1 

COUNTRY 

CURRENT   COIN 

NOMINAL 

EQUIVAT.ENT 

AT  PAR 

IN  U.  8.  DOLLARS 

COUNTRY 

CURRENT   COIN 

NOMINAL 

EQXnVALENT 

AT  PAR 

IN  U.  S.   DOLLARS 

EUROPE— Continued 

AFRICA 

Malta 

Netherlands 

Norway 

Poland 

Portugal 

Roumania 

Russia 

Spain 

Sweden 

Switzerland 

United  Kingdom 

Turkey 

Same  as  United  Kingdom 

Florin  or  Guilder 

Kronor 

Polish  Marks 

Gold  Milreis 

Lei 

Rouble 

Gold  Peseta 

Kronor 

Franc 

Pound  Sterling 

Gold  Pound 

4 . 8665 

0.402 

0.268 

Abyssinia 

Algeria 

Belgian  Kongo 

British  South  Africa 

British  West  Africa 

Egypt 

French  Africa 

Italian  Africa 

Liberia 

Madagascar 

Mauritius  and  Seychelles 

Maria  Theresa  Dollar 

or  Menelik  Dollar 
Same  as  France 
Same  as  Belgium 
Same  as  United  Kingdom 

do 
Egyptian  Pound 
Same  as  France 
Same  as  Italy 
Gold  Dollar  (U.  S.) 
Same  as  France 
Rupee 

$0,425 

0.193 

1.08 

0.193 

0.515 

0.193 

0.268 

0.193 

4 . 8665 

4.40 

0.193 

4.8665 

4 . 8665 

4.943 

0.193 

0.193 

1.00 

0.193 

- 

ASIA 

Morocco 

Portuguese  East  Africa 

French,  English  &  Spanish 
Same  as  Portugal 

money 

1.08 

British  India 

Rupee 

Portuguese  West  Africa 

Same  as  Portugal 

1.08 

Ceylon 

Rupee 

-' 

Tripoli 

Same  as  in  Turkey 

4.40 

China 

Tael  (Shanghai) 

Tunis 

Same  as  France 

0.193 

(Fluctuates  with  the  price  of  silver)                             | 

Zanzibar 

Rupee 

Hong  Kong 

Local  Dollars  (fluctuates 
the  price  of  silver) 

with 

1 

Dutch  East  Indies 

Same  as  The  Netherlands 

0.402 

French  Indo-China 

Silver  Piaster  (fluctuates  with 

the  price  of  silver) 

Japan 

Yen 

0.498 

• 

Persia 

Kran  (fluctuates  with  the  j 
of  silver) 

5rice 

Siam 

Gold  Tical 

0.3708 

Siberia 

Rouble 

Straits  Settlements 

Straits  Dollar 

Australia  &  New  Zealand 

Same  as  United  Kingdom 

4.8665 

Philippine  Islands 

Peso 

0.50 

Society  Islands 

Franc 
[72] 

0.193 

m 

[73] 

il 


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An  International  Service  in  Assistance  of  Foreign  Business 

Information  on  Guaranty  service  and  its  possibilities  is  available  through  our 
correspondents  in  the  following  cities: 

Outside  of  New  York  City 


♦Albany 

100  State  Street 
Telephone:  Main  6161 

Atlanta 

413-414  Atlanta  National  Bank  Building 
Telephone:  Main  693 

♦Baltimore 

211-212  Keyser  Building 
Telephone:  St.  Paul  3761-3764 

♦Boston 

111  Devonshire  Street 
Telephone:  Fort  HiU  6066,  6067 

♦Buffalo 

201-202  Ellicott  Square  Building 
Telephone:  Seneca  6400 

♦Chicago 

105  South  La  Salle  Street 
Telephone:  Randolph  5290 

♦Cincinnati 

2408  Union  Central  Building 
Telephone:  Main  2500 

♦Cleveland 

409  Guardian  Building 
Telephones:  Ontario  2480,  Central  7480 
Long  Distance  393 

♦Detroit 

201-205  Majestic  Building 
.Telephone:  Cadillac  4332,  4333 

Erie,  Pa. 

306  Marine  Bank  Building 
Telephone:  Erie  2611 

Harrisburg,  Pa. 
200  Calder  Building 
Telephone:  Harrisburg  4624 

Hartford,  Conn. 

911  Hartford- Aetna  Building 
Telephone:  Charter  8676,  8677 

Jamestown,  N.  Y. 

229-230  Wellman  Building 
Telephone:  Jamestown  1369 

Johnstown,  Pa. 

207  Lutheran  Building 

Telephones:  Johnstown  840,  Bell  540 


9 

Los  Angeles 

800  Citizens  National  Bank  Building 
Telephone:  63648 

Minneapolis 

1128  McKnight  Building 
Telephone:  Atlantic  5027 

*Philadelphia 

421  Chestnut  Street 
Telephones:  Bell,  Lombard  4691-4699 
Keystone,  Main  438 

♦Pittsburgh 

607  Oliver  Building 
Telephone:  Grant  7367,  7368,  7369 

Portland,  Maine 

608  FideUty  Trust  Building 
Telephone:  Portland  6367 

Providence,  R.  I. 

623  Hospital  Trust  Building 
Telephone:  Union  6997 

Reading,  Pa. 

306  American  Casualty  Building 
Telephone:  Reading  3422 

♦Rochester 

349  Powers  Building 
Telephones:  Bell,  Main  5749 
Stone  5413 

♦^t  Lottis  xif  o 

406  Third  National  Bank  Building 
Charles  H.  Newton 

San  Francisco 
907  Kohl  Building 
Telephone:  Dou^as  34 

SCRANTON,  Pa. 

806  Brooks  Building 
Telephone:  Bell  770 

Seattle,  Wash. 
511  Hoge  Building 
Telephone  Eliot  4257 

♦Toronto,  Ont.,  Can. 
14  Kind  Street 

Washington,  D.  C. 

811  Fifteenth  St.,  N.  W. 
Telephone:  Main  5815 


Wilkes-Barre,  Pa. 
604  Miners'  Bank  Building 

Telephones:  Bell,  4390;  Consolidated  859 

♦Asterisk  indicates  private  wire  connection  with  our  Main  Office  in  New  York. 

[74J 


♦Kansas  Citt,  Mo. 
Welch  Walker 
209  Commerce  Trust  Building 


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